Social grants push poverty levels down

The poverty rate fell 11 percentage points in the two years to 2011 as the government expanded welfare payments, Statistics SA said. About 45.5 percent of the population live in poverty, defined as those receiving a monthly income of R620 or less, Stats SA said in a report on its website yesterday. That is down from 56.8 percent, in 2009. The ANC has expanded social welfare grants over two decades, paying monthly stipends to children, pensioners and the disabled. With about 16 million beneficiaries, more people earn grants than have jobs. “Although initially seen as a short-term measure to address poverty, social grants have increasingly become a source of livelihood in South Africa and have played an instrumental role in reducing poverty levels,” it said. The number of South Africans living in extreme poverty, defined as those earning a monthly income of R321, fell to 20.2 percent in 2011, compared with 32.4 percent in 2009. – Bloomberg