Department of Social Development 2023/24 Annual Performance Plan

Meeting report

Department of Social Development, presented the Annual Performance Plan (APP) and Budget Vote 2023/2024
Mr Linton Mchunu, Acting Director-General (DG), Department of Social Development, presented the Annual Performance Plan (APP) and Budget Vote 2023/2024. He said that the 2023/24 APP marked the end of the term of the 6th administration. Therefore, all the priorities and commitments as espoused in the Medium Term Strategic Framework (MTSF) are to be realised and fulfilled through the 2023/24 APP. 

The DSD Portfolio dedicated the financial year 2023/24 as a year of consolidating the 6th administration’s work and intensifying efforts to closing all service delivery gaps.  2023/24 APP prioritises all the commitments that have lagged and the targets that have not been fully achieved as they appear in both the MTSF and the Minister’s Economic Partnership Agreement (EPA). 

During the 2019/24 MTSF, the DSD Portfolio continued to recommit itself to improving the quality of life of people living in South Africa, especially DSD beneficiaries. Despite the unprecedented disruptions to the service delivery environment occasioned by COVID-19, violent and social unrest and the July floods, DSD remained steadfast in developing and implementing responsive policies and programmes. DSD had to dig deeper and adopt innovative ways of providing much-needed social services to many poor and vulnerable people while DSD continued to be severely underfunded. It is also through this 2023/24 APP that DSD reflected and demonstrated (qualitatively and quantitatively) the impact we have made towards improving the quality of life of our people. DSD assessed all the provincial APPs for alignment to the DSD Sector Priorities, while it recognised that provinces have specific provincial priorities.

DSD Portfolio Commitments for 2023 and Beyond:

• Creating a Capable, Ethical and Developmental Portfolio.
• Basic Income Support for 18 – 59-year-olds is one of the vital anti-poverty strategies. DSD has embarked on extensive research and consultations, which have informed the policy proposals to be submitted for Cabinet consideration.
• Gender-Based Violence and Femicide through providing shelters and psychosocial support services to victims of crime and violence. DSD contributes to all six pillars of the National Strategic Plan on GBVF while also leading Pillar 4 of the NSP, which focuses on Response, Care, Support and Healing.
• Employment of Social Service Professionals to address social behaviour change challenges and help curb rising social ills.
• Alcohol and Substance Abuse has reached unprecedented levels and significantly impacted gangsterism, violence, road accidents, and many other unwarranted episodes.
• Disaster Management – DSD is improving its disaster management responsiveness systems and enhancing coordination with stakeholders across government, private sector and civil society spectrum.
• Youth and Gender Empowerment through skills development and job creation primarily through social entrepreneurship and EPWP - looking at social and solidarity economy.
• Care and Protection of Children, the Elderly and Persons with Disability – DSD must reduce violence against children, child abuse, neglect and exploitation and care for and protect the rights of the elderly and people with disability.
• Social Compacting – strengthening partnerships with social partners, incl. the NGO sector: to augment the shrinking resources and maximise impact – South Africa is currently experiencing severe fiscus constraints. Ailing international markets and a poor economic outlook exacerbate this. DSD will strengthen these partnerships to augment its limited allocation from the fiscus and realise a significant impact in improving the quality of life of our people.

Status of the MTSF Targets against the Executive Performance Agreement

• Minister’s EPA comprises 41 targets, of which 35 are within the DSD APP, 1 in the NDA APP and five within the SASSA APP.
• There is a high level of alignment between the targets of the DSD APP 2023/24, the National Annual Strategic Plan (NASP) and the MTSF.

 
As the lead for Priority 4, the Minister of Social Development must fast-track and present to Cabinet by Quarter 4 of 2022/23:

• White Paper on Social Welfare and requisite standards.
• Comprehensive Social Security Policy Framework.
• Policy for Social Insurance for Atypical and Own Account Workers.
• Policy on Coverage for 18 – 59. Government must view the SRD grant of R350 as not just a temporary measure but a precursor to a permanent income support policy for the working-age population. Coherent and well-designed active labour market interventions must complement such a policy
• Resolution of payment challenges of the SASSA grants – conclude re-negotiation of the SASSA/Postbank partnership and improve access to financial service platforms for grant beneficiaries.
• DSD, SITA, and DPME must work towards establishing an inclusive social protection register for the vulnerable (NIPSIS) timely intervention during crises (e.g., COVID-19). This will be assisted by establishing the social protection floor (led by the National Planning Commission /DPME).
• DSD must lead the effective implementation of the Drugs Master Plan.
• Ensure effective implementation of the National Strategic Plan (NSP) against GBVF by including NSP priorities/interventions in Strategic Plans and APPS.
• Resources must be reprioritised to increase funding for Front line social welfare (hire more social workers) - improve jobs and quality of care for the most vulnerable.

Numbers of targets in the DSD APP 2023/2024

• EPA targets on ECD must be formally reassigned to the Minister of Basic Education by the DPME.
• EPA target on the percentage of eligible applicants receiving COVID-19 special relief grant (R350) is not an APP target.
• The NASP indicators have been reduced from 8 to 7.  The NASP indicator on the number of social professionals has been dropped, including the indicator for the Compensation Fund. 
• Indicators for food security have been expanded with an indicator of the number of learners benefitting from school feeding schemes at public schools.
• Targets of APPs   DSD,  SASSA and the NDA  represent a collective count to the illustrative scope of oversight.
• SASSA APP makes provision for processing of COVID-19 SRD applications with a target of 95%.

The current workforce employed by Government Departments

• There are 22 168 Social Service Professionals (SSPs) employed by Sector Departments (DSD, DBE, SAPS, DCS, DOD).
• Out of 22, 168:
• SD is having 18 948 SSPs
• DBE has 934 SSPs
• DCS has 1865 SSPs
• SAPS has 283 SSPs
• DOD has 138 SSPs
• 3 388 were contracted for a short-term period ending 31 March 2022 through a Presidential stimulus package.
• There is an additional pool of Social Service Professionals in the NPOs, CSO and Private Sector Organisations that are helping to address/respond to the social ills of society.

 
Costing

• The costing is based on the additional 31 744 Social Service Professionals required by NDP Vision 2030 to reach 55 000 by 2030.
• The estimated cost based on the workforce needs is approximately R9 578 552 700 billion.
• The costing is anticipated to be implemented on a phased approach for six (6) years.

Notes to the baseline adjustments

• Compensation of Employees: R15.8 million in 2023/24, R16.0 million in 2024/25 and R16.2 million in 2025/26 for cost-of-living salary adjustments.
• SRD 350 Grant: R35.7 billion in 2023/24 to continue the COVID-19 Social Relief of Distress Grant until March 2024.
• Social Assistance Grants: Amounts of R5.8 billion in 2023/24, R9.1 billion in 2024/25 and R14.5 billion for inflationary increases to social grants; and
• SASSA Administration: R400 million for transfer to SASSA to administer the COVID-19 Social Relief of Distress Grant.

Recommendation
The Select Committee on Health and Social Services is recommended to consider the Annual Performance Plan 2023/2024 as tabled in Parliament. 

See the attached presentation for further details.

Discussion
The Chairperson thanked the Department for the presentation. He noted the decrease in the budget: a 20.8 percent decline in administration, a 4.88 percent decline in social welfare and policy development implementation support, and a 4.88 percent decline in social policy integrated services. He asked the Department how it would deal with the decreases in budget. He also requested the DSD to keep the Committee updated on the matter.

On payment of military veteran grants, he requested an overview of the relationship between the DSD and the Department of Military Veterans. He noted concerns about the non-payment of veterans in December 2022 by the latter Department due to the issues with the database. He said that SASSA hosts the most extensive database and manages annual payments of more than 200 billion rands.

Ms S Luthuli (EFF, KZN) referred to the unemployment grant, which does not meet the standard of living costs. She asked the Department to inform of measures to increase the budget.

The Chairperson asked the DSD to brief the Members on interventions to resolve the challenges of the Post Office. They noted that the Post Office manages most of the grant payments.

Ms D Christians (DA, Northern Cape) asked how the DSD would resolve the renewal of social assistance cards. She said that many post office branches are closed, and many people are standing in queues waiting to receive their grants. The crisis is worsening. Should the country be concerned, as there is a lack of communication on the issue? There are 5.9 million beneficiaries entitled to the renewal of grant cards. The situation is exasperated by the onset of winter, load shedding, and a backlog of doctors to conduct medical assessments.

She requested that the DSD explains the disconnect and lack of communication between the Post Office and SASSA. She referred to the Post Bank’s communiqué introducing a new cardless payment method. Was the new payment system tested and piloted against fraudulent abuse? When will it be taught?

She noted concerns about the reduced NGO budgets and lack of consultations, which resulted in several organisations' closures and reduced core programmes. She asked DSD to respond on the corrective measures to address the 12.2 billion projected underspending in the financial year. On the impact of social grants reducing poverty, she asked whether the Department analysed the effect. She requested that the DSD provide an update on establishing the Inspectorate on Social Assistance. She referred to the significant challenge of HIV/AIDS and asked what actions were undertaken to provide adequate funding to promote prevention and awareness.

She referenced DSD's presentation on multi-dimensional GBV and substance abuse, highlighting that it facilitates grants and addresses social challenges. However, the DSD does not brief the Committee on the successes of interventions. How is DSD collaborating with other departments in government and stakeholders, and what successes were achieved? Regarding the increased food and living expenses, she asked the Department to inform of its role in addressing the issue.

Mr I Ntsube (ANC, Free State) agreed that Post Bank is a significant concern and should be clarified. He asked the DSD to confirm when Cabinet will approve the basic income support grants.  He observed that the social relief grant takes longer than three months to obtain. He requested DSD to explain the discrepancy.

Regarding the workforce, 3380 contracts lapsed in 2022. Mr Ntsube asked what the DSD plans are regarding the contracts. He asked what anti-corruption safeguard measures will be implemented in the current financial year.
On the special projects and innovation for the current financial year, he asked the Department to guide him on how it will be managed in the provinces.

DSD’s responses
Mr Fanie Esterhuizen, Chief Financial Officer, DSD, responded to the decreased funding. He referred to slide 36, indicating a decrease of 8 percent in social assistance. As determined by National Treasury, the R35 million for the SRD received this financial year will continue beyond the 2024/25 financial year.

Social security policy is reduced by 0.68 percent, as the R400 million was only received as per SASSA SRD management reduction for the 2024/25 financial year. Programmes 3, 4, and 5 will be increased by 5 percent in line with the inflation increase for the 2024/25 financial year.

Ms Brenda Esan, Assistant Director at South African Social Security Agency, responded to the veterans and social relief grant questions.

The veterans fall into the Korean and World War Two Wars grant categories. Thus, there are no new entrants, and most recipients are in their 70s. This differs from the grant category of struggle veterans, managed by the Department of Military Veterans. There was a discussion on SASSA collaborating with this department, but it did not materialise. The department remained a stand-alone, as it provided support beyond the issuance of grants.

She provided an overview of the policy work on the social relief grant, namely the shift from a temporary to permanent status. Fiscal affordability and sustainability are essential factors. The policy research indicates that it is affordable at the current amount and would be reasonable with a gradual increase of the grant and means requirements. Thus, it could become a permanent grant.

It is also envisaged that the beneficiaries could contribute to the local economy by purchasing goods and services. The funding provided by government would only be part of what its costs, as some of it will be recouped through VAT, and SASSA has developed a fiscally sound proposal.

SASSA would submit the plan to Cabinet once the minimum funding amount of R50 million is approved. The SASSA legislation is amended to incorporate the income support aspect in the grant.

On the Post Office and Bank challenges, the DSD noted the seriousness of the matter. DSD is engaging with the entities to assess and address the issues.

Food insecurity is also a severe concern, and social grants are not the solution. Statistics SA informed that an individual requires R663 to purchase sufficient food every month. The central social grants are above those values. However, the child support grants are below the value, and DSD and SASSA are engaging Treasury to increase the amount. Thus far, a top-up amount of R250 has been approved. 

Mr Mchunu added that DSD consistently engages with Treasury on the social relief grant. The real value of the grant reduced drastically to less than R9 per day. While DSD recognises that the focus is strained, adequate employment must be addressed. Despite DSD’s interventions, Treasury denied the request to extend the R350 grants.

On the Post Bank, DSD intervened on the matter. Post Bank provided some guidance, but there needed to be a forthcoming solution.

Mr Brenton van Vrede, Chief Director: Social Assistance, DSD, stated that the SASSA engaged with the Department of Military Veterans. The Department of Military Veterans requested assistance to administer the grants, and SASSA agreed.

On the consistency of the SRDs, he said that the current grants are assessed monthly through checking bank accounts and E-wallet transfers. Grants are only provided when the individual is in financial distress.

Post Bank is a significant challenge and has impacted grant payments. It inherited many operational challenges from SAPO and is in the process of rectifying the challenges.

DSD informed Members that there are two solutions regarding card replacements. One key will be announced in the week. It would likely entail an extension of the expiry date. This is under testing with the various banks. The solution will be communicated once the possibility is confirmed.

The second solution is the cardless payment system using an ID number and pin. It is a secure and accessible solution. SRD clients utilised it, and it has been in process for over a year.

There are plans to consider a specific ATM and local merchants to facilitate payments.

Ms Esan said that the grants positively impact poverty and enhance opportunities for the beneficiaries to participate in the economy. She committed to sharing the research studies in this regard.

Mr Peter Netshipale, Acting DDG, DSD, stated that the overall budget of NPOs remained the same. The only notable change was the budget increase when the ECD transferred to DBE. The only minor decrease in funding for NPOs applies to recent declines in Gauteng, which will be addressed.

As poverty increases, so does the need for NPO budgetary support increased. This also relates to an increased demand for priority projects like HIV/AIDS.

The DSD would continue monitoring the NPO budgetary challenges.

Mr Nkere Skosana, Chief Director, HIV/AIDS, DSD, said that the Department processed the funds to SANAC and works closely with SANAC to ensure effective and timely transfers in the future. SANAC requested extended time to prepare its reports and to provide financial compliance.

On the special projects and innovation for the current financial year, he said that the Department prioritises implementation in the provinces. The Deputy Minister called for continued support to NGOs in the provinces.

Mr Thabani Buthelezi, Acting DDG, DSD, said that the Department received funding to deal with the pool of undeployed social service professionals since the contracts expired on 31 March 2022. However, the funding needed to be improved for full-term contracts. The DSD submitted a long-term bid to Treasury.

Mr Mchunu added that the DSD could provide EVWP disaggregated data on job creation, youth, disability, and provincial allocation.

DSD achieved considerable success in preventing and reducing GBV and substance abuse. Further details will be provided as required.

DSD is in the process of establishing an Inspectorate on Social Assistance. The Executive and staff would be recruited in 2023.

He also responded to the questions related to the Bills. He said three Bills were proposed: the Fundraising Bill, Older Persons Bill, and Children’s Amendment Bill.

The Chairperson thanked DSD for the presentation and engagement.

Committee matters
The Committee considered the Annual Performance Plan 2023/24 and draft minutes of the meeting of 18 April 2023. The minutes were unanimously approved and adopted to reflect the discussions.

The Chairperson thanked Members for their attendance. 

The meeting was adjourned.