Can grant increases be withdrawn?

The conundrum of SASSA and the VAT freeze in 2025 is sort of definitely one thing nobody in authorities has a solution for proper now. Nevertheless, it’s what occurs when fiscal issues just like the 2025 Funds straddle political, social and authorized points. And it’s a query we raised again in March 2025, too …

For those who’ll recall, following the unprecedented Funds Speech postponement in February, Finance Minister Enoch Godongwana’s had a tough time discovering adequate cash for social welfare. Certainly, South African Social Safety Company grants are our second-highest funds expenditure, after debt servicing.

Now, it seems SASSA and the VAT freeze are inexorably linked on the hip. As a result of, in gentle of the minister’s proposed VAT improve to pay for a ever-ballooning social wage, he determined to ship above-inflation social grant will increase to ease the burden. These got here into impact this month, April 2025. However the query is whether or not SASSA can by legislation reverse them after one month?

SASSA AND THE VAT FREEZE

Furthermore, central to Godongwana’s technique was a 5.9% improve to ‘core’ SASSA Previous-Age and Incapacity grants. This mirrored as R2 310 for over 60s and R2330 for over 75s. Nevertheless, SASSA Baby Help would solely make do with a decrease 5.6% hike, paying out R560 from April 2025 onwards.

However, in contrast to VAT will increase that by no means truly materialised, as a result of they had been solely due on 1 Might 2025, SASSA grants have already been paid. The DA and EFF had been at all times against the Finance Minister and plans to hike VAT to pay for it. And so they’ve taken issues to the Excessive Courtroom with nice success.

Particularly, DA chief John Steenhuisen stated he wouldn’t help a funds that places extra stress on needy residents. The ANC then sought help exterior of the GNU to get the Funds handed within the Nationwide Meeting. So, the place does that go away SASSA and the VAT freeze?

WHAT’S NEXT FOR GRANTS?

Curiously, in earlier examples of budgets being overturned in courtroom, it was actually because governments didn’t do sufficient for social welfare. Examples from Hungary, Columbia and India pressured a re-appropriation of funds for the needy. Nevertheless, South Africa has arguably gone the opposite means. It’s already began spending cash on SASSA grants it will probably now not account for.

Nevertheless, at this stage, it’s too early to inform if SASSA and the VAT freeze will result in reversed grant will increase in 2025. Our intuition on the matter is that it’s too late to reverse April 2025’s grant will increase. And any achieve in authorities coffers from such motion might be offset by large dangerous will from the hundreds of thousands of SASSA beneficiaries.

Having stated that, we’ve had loads of firsts already in 2025. And till we’re reassured for sure from SASSA official, this might go away beneficiaries with loads of anxiousness. Let’s simply hope it’s not the nation’s aged and needy who’re left within the lurch as a consequence of, as soon as once more, poor insurance policies from the ANC.