21% elderly grants hike expected

MBABANE – The elderly grants are set to increase by a maximum of E106. This expected increment is based on the inflation, which has corroded their grants since the last increment in 2019. Since 2019, inflation has increased by 21.22 per cent and based on the Speech from the Throne, it is more likely that government will increase the grants by E106. The elderly grants help senior citizens above 60 years of age who no longer earn from employment. The grants provide monthly support for these individuals to cater to their basic needs, ensuring they maintain financial independence and dignity in their later years.

On Friday, His Majesty King Mswati III relayed good news for elderly persons in the country. When delivering the Speech from the Throne in Parliament, the King announced that due to the inflationary issues and the burden often experienced by the elderly persons, their grants will be increased this coming fiscal year. Though not stating the amount of the increase, the King said government has a responsibility to take care of the vulnerable groups in society, including the elderly. Sources have claimed that government has budgeted between 15 and 20 per cent for the implementation of the King’s command. If government implements the 15 per cent increment for the elderly, their grants will increase with E75.

There are currently 84 740 elderly grants beneficiaries and the increment of E75 to grants would see the taxpayer making an additional E6.36 million to the current E585 million paid to them annually, as per the national budget. The increment of the elderly grants by E75 shall mean that annual budget should increase by almost E76.3 million. This would set their grants to E 661.3 million per annum. On the other hand, if government implements the increment as per the inflation rate, it shall cost the taxpayer an additional E8 982 440 per month to fulfil the King’s directive of catering for the elderly. This monthly hike in the grants tallies E107.79 million per year when computing the increment with the current 84 740 number of registered senior citizens with the office of the Deputy Prime Minister (DPM).

Cost

This is set to cost the taxpayer over E692.79 million per annum. This is not the first time that the King announced an in crease in grants for vulnerable persons during the Official happened in 2017, whereby he announced an increase in grants for the elderly, people with disabilities and orphaned and vulnerable children (OVCs). The increase saw the increase in the elderly grant to E400. Such an announcement was defined as an answer to their prayers, as it was even brought to the attention of the King during the Sibaya held in August the previous year. At the time, elderly people were receiving E260 per month, while people with disabilities got a grant of E200,

In November 2019, the late former Prime Minister, Ambrose Mandvulo Dlamini, announced that the elderly grants were to increase to E500 from E400 per month. It is worth noting that the National Development Plan recommended that a comprehensive policy framework for social protection, which takes into consideration the different types of vulnerabilities, pulling together the current mix of grants, restructure the system and remove ineligible people be put in place.  As things stand, the grants are administered by the Department of Social Welfare.

On the other hand, most countries have enacted legislations specifically for social assistance.The allocation of social grants is also implemented in neighbouring South Africa where it is administered through the Social Assistance Act of 2004, which replaced the 1992 Social Assistance Act. It consolidated legislation of social assistance, codified the right to the OAG and centralised the administration of social assistance through the creation of the South Africa Social Security Agency (SASSA). SASSA was founded in 2005 to centralise the provision of social security assistance, formerly a primarily provincial function, in order to reduce corruption and improve service delivery.

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