Billions in SASSA underspend declared while elderly suffer
· The South African
It’s perhaps no wonder that a near-R5-billion SASSA underspend was declared in parliament last week. Department of Social Development (DSD) officials told the parliamentary portfolio committee on welfare that it did not disburse all the money available to it. Meanwhile, legitimate beneficiaries suffer each month, unable to make ends meet …
As mentioned, the billions in SASSA underspend is to be expected in a department in turmoil. The DSD has no permanent minister right now, following Sisisi Tolashe’s firing for misconduct last month. In between her misappropriation of luxury SUVs as president of the ANCWL, she also rubber-stamped one of the smallest annual grant increases in recent memory (3.4%).
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SASSA UNDERSPEND IN 2026
While the South African Social Security Agency fights for tightening reviews of the very people it’s supposed to help, the department has revealed a R4.8-billion SASSA underspend in the last financial year. As such, the DSD was handed R285.9 billion for social grants in 2025/26. However, it spent just R281.1 billion of that. No doubt the National Treasury will love to hear it. But what about the pensioners, disabled and families with young children who are suffering every day?
SASSA Old-Age Grants proceed later this week – Thursday 2 July 2026. The R4.8-billion SASSA underspend, split across the four-million existing beneficiaries works out to an extra R1 200 per recipient over the course of a year. For context, that would lift the grant for 60-to-74-year olds from R4 000 to R5 200 per month (roughly 30%). And for over 75s, it amounts to a hike from R4 200 to R5 400 every month.
WHY THE BIG SASSA UNDERSPEND IN 2026?
Billions in SASSA underspend is being called unforgivable as recipients to struggle to make ends meet each month. Image: FileNevertheless, the SASSA underspend is being attributed to two major things. Stricter verification/review measures and lower uptake of certain grants (think R370 SRD). However, going into further detail, it is the SASSA Old-Age Grant that was underspent the most, by R793 million. SASSA Child Support by R533 million. And SASSA disability by R318 million. Sadly, the DSD was unable to explain why money meant to help the elderly, disabled and needy families with children sits unused amidst a cost-of-living crisis.
In contrast, the department’s Chief Financial Officer, Thandeka Ngcobo, framed it as a victory for ‘improved administration.’ Meanwhile, civil society sees wood for trees and says government cannot efficiently disburse money that’s already budgeted to fight poverty. It is this improved administration – through biometric checks, life certifications and targeted reviews – that’s closed the taps for many needy SASSA grant recipients.
WHO IS BEING EXCLUDED FROM SASSA GRANTS?
Speaking at the committee meeting, Patriotic Alliance’s Sheila Peters asked the obvious question. How does the department know it isn’t excluding legitimate beneficiaries under the guise of so-called administrative efficiencies? Tellingly, nobody could give her a straight answer …
Therefore, the practical takeaway for SASSA beneficiaries is this. The agency is trying to save money above all else, so don’t give them an opening to challenge your grant. Always keep your banking details current, don’t ignore a request for life certification, and if a payment is missing, contact the agency immediately for verification.
Contact SASSA here for assistance:
- SASSA toll-free line: 0800 601 011
- Head Office of SASSA: 012 400 2322
- Email SASSA: [email protected]
But what do you think? Is the SASSA underspend a sign of a better-functioning agency? Or is it yet another example of governmental inefficiency? Share your views in the comments section below …