Issued by: Ministry for Welfare and Population Development
STATEMENT BY WELFARE AND POPULATION DEVELOPMENT MINISTER GERALDENE FRASER-MOLEKETI ON PROGRESS MADE ON THE NEW CHILD SUPPORT BENEFIT
The Cabinet decision adopted in March this year to introduce a new child support grant to replace the existing state maintenance grant, invoked much public debate and interest.
Submissions made by civil society organisations during recent public hearings are being studied by the Department of Welfare. The submissions contained valuable insights which will be integrated where appropriate.
When the proposals were adopted earlier this year, Cabinet mandated the Department to conduct further technical work as part of a process of refining the proposals. The technical work included among others, legislative amendments, recommendations on the means test, payment options, and institutional arrangements required for the delivery of the new grant. The Department will be reporting to Cabinet after the recess.
Having listened to the concerns raised by many of the constituencies, there is no doubt that vigorous public debate has shifted thinking on all sides.
At the heart of this policy is the commitment to end racial discrimination in child and family support, and to extend benefits to millions more children in very poor households. This principle has been widely acknowledged by all parties.
But, the greatest concern was with the level of the grant. The public hearings did not provide a consensus on what the level should be.
Clearly, the level of the grant will have to be linked to an objective measure, it cannot be arbitrary. The household subsistence level was used for this purpose. It is not a perfect measure, but as more adequate poverty data and indicators are developed, these measures will have to be improved.
The level of the grant was set slightly above the average household subsistence level to feed a child under 6 years for the lowest income groups in September 1996. This measure did not include shelter, transport and clothes. Poor households tend to rely on a diversity of small sources of Income. The grant will supplement these sources and will provide some consistency of income.
The new grant will form part of a wider package of programmes which contributes to human development through improved health care, primary education, subsidised housing, land reform and employment creation through economic empowerment programmes. The Department of Welfare cannot cover all of the costs of rearing very poor children. We can however supplement some of these costs through the benefit and through promoting co-responsibility between other government departments, NGOs and above all in a partnership with parents. Fathers will have to play their part and the private maintenance system must be improved.
The level of the grant is not static. Annually, grants are increased to take inflation into account. For many years, these increases were well below inflation levels. As from the 1st July, old age pensions and disability grants will increase by R40. Increases were not granted for state maintenance grants since the programme will be phased out. An inflationary increase is under consideration for the new grant.
The use of a means test has also been rejected. The new grant is intended to be a flat rate paid to those who qualify according to a means test. The alternative to a means test is universal access of all children.
Not only is this unaffordable, it results in leakage to the non-poor and will perpetuate inequity.
Whilst it seem that there are many differences, I believe that there are many more agreements between government and non-governmental organisations.
The call for a holistic approach to governmental programmes is supported as well as the need to improve the efficiency, effectiveness and a more people friendly delivery system. THere is also widespread agreement that cash transfers must be protected as it provides a much needed safety net for poor children. We are committed to strengthening our partnership with NGOs in development and in meeting the needs of the majority of our children who need to reap the benefits of our new democracy.
A detailed statement dealing with the details of the child support benefit and in response to concerns raised by NGOs and individuals will be released in August 1997.
ISSUED: Ms Geraldine Fraser-Moleketi, MP Minister for Welfare and Population Development
ENQUIRIES: Brian Sokutu, Press Secretary CELLPHONE: 082-807-5397