16/04/2020
How to help the unemployed and informal sector workers during COVID-19 lockdown and its aftermath? Experts from UCT's Southern Africa Labour & Development Research Unit, University of Cape Town, the Children's Institute, University of Cape Town, and many others believe a short-term increase in the amount of a social grant - the Child Support Grant in particular - will be most effective. Why?
1. On top of the impending health crisis, we are on the edge of a serious economic, humanitarian and security crisis. Jobs are being lost, the informal sector is caving, households are destitute, people are starving, looting has started.
2. We urgently need to support vulnerable households to offset loss of earnings, to ensure that people can eat, and to demonstrate that the government is looking after the nation. We cannot shut down the economy and leave people to starve.
3. Food parcels are not the main solution – they can be used to fill gaps, but they cannot reach the scale required. They are already at risk being looted. Supplies are sourced from large chain stores, benefiting private sector and undermining small local economies and informal sector.
4. The solution is to get cash into households as quickly as possible. It needs to be a substantial amount of cash. It needs to reach the poorest households, including those where income will have been severely impacted by the lockdown – i.e. those affected by unemployment and the decimation of the informal sector. This cash injection will also help to support the informal economy and stimulate local economies.
5. The only way to reach large numbers of poor households quickly and reliably is to use the existing grant infrastructure. It is tried-and-tested, has very low administrative costs compared to other options, and can be implemented immediately, from the beginning of May.
*Five reasons why it needs to be the CSG*
1. The CSG has the biggest reach of all grants. It goes to 12.8 million children in nearly 6 million households. (That’s nearly a third of all households in South Africa.) It would be possible, for example, to transfer R40bn to these households within 6 months, and without risk of leakage.
2. The CSG reaches the poorest households. It is the only grant with a low means test, whereas other grants like the old age pension and disability grant are not only for the poor – they are not explicitly pro-poor.
3. The CSG is the most effective way of reaching the informal sector. Although it is targeted to children, the CSG reaches 80% of vulnerable informal worker household members (whereas the old age pension only reaches 28% of the informal sector).
4. The CSG is an effective way of reaching unemployed adults. Working age adults who are unemployed, have lost jobs or are in low-paying precarious jobs are more likely to be living with children than with pensioners. (Many more live with neither children nor pensioners, and this will be an important gap to address after the initial CSG intervention is in place.)
5. The CSG is generally well spent, on essential goods. Multiple studies show that the grant is spent widely. The Department of Social Development’s own research showed that it was spent on 5 main items: food, education, clothing, health and transport. Poor households are generally careful with their money, and will be even more careful in this time of economic crisis.
In summary: it would be fine to top up all the grants, but if it comes to a choice, then the CSG is the one to prioritise. The CSG has the best chance of reaching the right households at the scale needed.
In support of this call, sign this online petition to the President: https://bit.ly/TopUpCSG
UNICEF South Africa .ZA Black Sash Cindi - Children in Distress Network Equal Education Equal Education Law Centre Rural Health Advocacy Project National Association of Child Care Workers - NACCW Section27 Institute for Economic Justice Alan J Flisher Centre for Public Mental Health Bulungula Incubator SA Civil Society for Women's, Adolescents' and Children's Health Umduduzi - Hospice Care for Children amandla.mobi The Teddy Bear Clinic South Africa Jelly Beanz Preschools 4 Africa AECYC Association for the education and care of young children/ VVOS Oxfam South Africa Ilifa Labantwana Child Welfare South Africa Nal'ibali The Institute for Poverty, Land and Agrarian Studies (PLAAS) Protective Behaviours Southern Africa Cotlands Motheo Training Institute Trust