- \n
- The\u00a0lower-bound<\/strong>\u00a0poverty line is now\u00a0R1,109 per person per month<\/strong>\u00a0(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;<\/li>\n<\/ul>\n\n\n\n
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- The\u00a0upper-bound<\/strong>\u00a0poverty line is now\u00a0R1,634 per person per month<\/strong>\u00a0(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.<\/li>\n<\/ul>\n\n\n\n
The below graph shows how the inflation-adjusted poverty lines have changed from 2006 to 2024.<\/p>\n\n\n
\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/08\/Poverty-lines-2024.jpg\")
<\/a><\/figure><\/div>\n\n\nWhile 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.<\/p>\n\n\n\n
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.<\/strong><\/p>\n\n\n\n
This has led to a significant dependence on the state for survival through social grants.<\/p>\n\n\n\n
According to the latest General Household Survey conducted by Stats SA, approximately 24 million people in the country are receiving government grants.<\/strong> <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Stats SA estimates that 50% of all households in the country now receive at least one social grant<\/strong>, and grants are the main source of income for almost one-quarter (23.0%) of households nationally.<\/p>\n\n\n\n
![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2024\/05\/Social-grants-10-year-1024x431.jpg\")
<\/a><\/figure>\n\n\n\nIn 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.<\/p>\n\n\n\n
From April 2024, grants were increased, with many well above the new poverty lines.<\/p>\n\n\n\n
As announced in the 2024 budget, permanent social grants have been increased to keep up with inflation and improve access.<\/p>\n\n\n\n
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- The SRD grant went up from R350 to R370;<\/li>\n\n\n\n
- The old age grant went up from R2,085 to R2,185;<\/li>\n\n\n\n
- The old age grants for those over the age of 75 increased to R2,205;<\/li>\n\n\n\n
- Grants for war veterans increased from R2,105 to R2,205;<\/li>\n\n\n\n
- Disability grants went up to R2,185;<\/li>\n\n\n\n
- The Foster care grants increased to R1,175;<\/li>\n\n\n\n
- Care dependency grants rose from R2,085 to R2,185; and<\/li>\n\n\n\n
- Child support grants went up to R525.<\/li>\n<\/ul>\n\n\n\n
\n\n\n\n
- The\u00a0upper-bound<\/strong>\u00a0poverty line is now\u00a0R1,634 per person per month<\/strong>\u00a0(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.<\/li>\n<\/ul>\n\n\n\n