Inequality Unveiled | Legal Challenge Against R350 Grant Exclusions.The Institute for Economic Justice (IEJ) takes legal action against the South African Social Security Agency (Sassa) over alleged unfair exclusions of beneficiaries from the R350 Social Relief of Distress (SRD) grant. This dispute revolves around the means test and budget cap imposed on applicants.
Inequality Unveiled | Legal Challenge Against R350 Grant Exclusions
The IEJ contends that the SRD regulations have resulted in millions of eligible individuals being unjustly excluded due to the budget cap. However, Sassa argues that the grant is not intended for unemployment relief.
Beneficiary Struggle
Kersha Govender, a recipient from Richards Bay, faced multiple rejections for the R350 SRD grant in 2023, despite receiving it in 2021. Her appeals were similarly denied, raising concerns about the fairness of the process.
Means Test and Exclusions
The Sassa means test limits beneficiaries to R624 per month. Despite Govender’s claim of receiving no other income, many others are also allegedly excluded by Sassa’s means test and budget cap, as highlighted by the IEJ.
Mass Appeal Rejections
Sassa has reported over a million monthly appeals rejected due to the means test, a figure contested by the IEJ and #PayTheGrants. Legal action was initiated against Sassa and the Department of Social Development in July this year, challenging the SRD regulations.
Key Challenges
The IEJ’s legal challenge targets various aspects of the grant application process, including the online-only application method, the database verification procedure, and the appeals process. It seeks a broader definition of “income” and questions the accuracy of information sources used.
Eligibility Discrepancy
Approximately 16 million individuals earning below R624 per month qualify for the grant, yet only around 8.5 million are approved monthly. The Department of Social Development initially stated the grant was limited to 10.5 million beneficiaries but acknowledged that millions more live below the food poverty line.
Budget Cap Controversy
The IEJ alleges that National Treasury imposed a budget cap in 2022, deliberately excluding eligible beneficiaries who are unemployed and facing food poverty.
Poverty Line Data
StatsSA’s latest national poverty line figures show varying thresholds, including R760 for the food poverty line, R1 058 for the lower-bound poverty line, and R1 558 for the upper-bound poverty line.
Appeal Rejections
In court documents, the IEJ highlights that appeals based on alternative income sources were consistently unsuccessful, with millions of appeals filed each month from July to October 2022.
