The social grants system has faced allegations of fraud over the years.
MTBPS 2026: Government has witnessed R13.1 billion in savings by reducing social grant fraud through administration and verification measures.
As a result, it will implement similar approaches for the National Student Financial Aid Scheme bursaries and housing subsidies, according to National Treasury.
Treasury today released the high-level documents that coincide with the Medium-Term Budget Policy Statement (MTBPS) delivered by finance minister Enoch Godongwana.
Prior to the address, Treasury hosted a media briefing with the minister, his two deputies, SARS commissioner, SARB governor as well as the other principals within the department.
In the MTBPS, Treasury indicates a total of R38.1 billion in savings over the 2027 medium-term expenditure framework period.
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The source of the savings includes social grant verification, national department efficiencies, pausing human settlement grants and cash surpluses in public entities.
Treasury indicates that enhanced biometric enrolment and beneficiary verification led to the savings in the social grants system. The bulk of the verification has been for the social relief of distress grant, which has been largely flagged for fraudulent and unlawful payments.
As a result of the reduced fraud in the system, the savings have been directed to other parts of the government system, according to the document.
“As a result of strengthened verification measures, the number of social grant beneficiaries is expected to decline from 17.8 million in 2026/27 to 17.1 million by 2029/30, generating savings of R6.2 billion.
“These savings will be reprioritised to prevent gender-based violence and femicide, and to support priority health sector interventions to combat child malnutrition and stunting.”
Social grant benefits are state-funded to support qualifying individuals – such as elderly or disabled people or children. These grants are administered by the South African Social Security Agency (SASSA), an entity under the Department of Social Development.
The state provides old-age, disability and child support, and other social grants to 18.1 million beneficiaries.
In 2024, Treasury indicated it would impose stringent database crosschecks on SASSA, amid allegations of fraud and unlawful grant recipients.
Among the interventions indicated at the time was digitising and simplifying the application and disbursement process for social grants, rolling out digital identification documents, and building a centralised and accessible website for all government services.