Replacing the R350 Social Relief of Distress (SRD) grant with a ‘Family Poverty Grant’ (FPG) is fraught with implementation difficulties, because by doing so approximately the current nine million recipients might be excluded. The National Treasury is in favour of targeting households with a ‘Family Poverty Grant’.
The Family Poverty Grant is excellent in theory but implementing it in the country will possibly lessen the advantages while introducing new problems which was suggested by Ihsaan Bassier and Joshua Budlender in Daily Maverick by arguing that ‘‘the FPG would be far be the most difficult one to implement and that the efficiency advantage such a grant is especially sensitive to implementation failures’’. Replacing the SRD with a Family Poverty Grant will reach fewer individuals in the country.
Currently the SRD grant is dispensed to 10 million and by replacing it with the FPG only ten percent of the amount would benefit, resulting in a disaster for nine million people, whereas with the SRD grant there are exclusion errors about one in seven people are excluded on outdated systems such as UIF and NSFAS. Individuals on the other hand keep worrying about finding proper jobs to support their families instead of waiting for grants from the government. Lastly, if job creation is a factor which is not a priority for the government, then many South Africans might quit to look for jobs.
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