The R30-a-day line in South Africa that millions cannot cross

Statistics South Africa has published its updated national poverty lines for 2024, with millions still living below the new levels.

Poverty lines are important tools that allow for the statistical reporting of poverty levels and patterns and the planning, monitoring, and evaluation of poverty reduction programmes and policies.

The primary purpose of the national poverty lines is to provide a tool for the statistical measurement of money-metric poverty. The lines contain both food and non-food components of household consumption expenditure.

Stats SA tracks three lines – the food poverty line, the lower-bound poverty line, and the upper-bound poverty line.

• The food poverty line is now R796 per person per month (R27 a day), up from R760 previously (+4.7%). This refers to the amount of money that an individual needs to afford the minimum required daily energy intake. This is also commonly referred to as the “extreme” poverty line;

• The lower-bound poverty line is now R1,109 per person per month (R37 a day), up from R1,058 previously (+4.8%). This refers to the food poverty line plus the average amount derived from non-food items of households whose total expenditure is equal to the food poverty line;

• The upper-bound poverty line is now R1,634 per person per month (R55 a day), up from R1,558 previously (+4.9%). This refers to the food poverty line plus the average amount derived from non-food items of households whose food expenditure is equal to the food poverty line.

The below graph shows how the inflation-adjusted poverty lines have changed from 2006 to 2024.

While the updated national poverty lines help establish a government baseline, they do not accurately reflect the plight of many poor South Africans, who often end up substantially worse off as they provide for themselves and their family members.

According to the Pietermaritzburg Economic Justice & Dignity group (PMBEJD), approximately 30.4 million people in South Africa (55%) live below the 2023 upper-bound poverty line, and about 13.8 million (25.2%) live below the food poverty line.

This has led to a significant dependence on the state for survival through social grants.

According to the latest General Household Survey conducted by Stats SA, approximately 24 million people in the country are receiving government grants.

The number of South Africans on social grants has increased significantly over the last 20 years, rising from 13% in 2003 to just under 40% in 2023. Meanwhile, the tax base remains stagnant at 7.1 million on the back of a decline from the previous year.

Stats SA estimates that 50% of all households in the country now receive at least one social grant, and grants are the main source of income for almost one-quarter (23.0%) of households nationally.

In July, the National Assembly passed the 2024 Appropriation Bill, which will increase social transfers by nearly R50 billion to over R300 billion for the year.

From April 2024, grants were increased, with many well above the new poverty lines.

As announced in the 2024 budget, permanent social grants have been increased to keep up with inflation and improve access.

• The SRD grant went up from R350 to R370;
• The old age grant went up from R2,085 to R2,185;
• The old age grants for those over the age of 75 increased to R2,205;
• Grants for war veterans increased from R2,105 to R2,205;
• Disability grants went up to R2,185;
• The Foster care grants increased to R1,175;
• Care dependency grants rose from R2,085 to R2,185; and
• Child support grants went up to R525.

Read: Parliament greenlights R330 billion for grants in South Africa