THE South African Communist Party (SACP) has called on government to implementation a Universal Basic Income Grant to assist millions of poor and unemployed South Africans.
Delivering a keynote address at the launch of the Red October campaign during a virtual rally on Sunday, SACP General Secretary Blade Nzimande said government’s R350 Covid-19 social relief grant gave a lifeline to many people and should be implemented on a permanent basis.
“The levels of social distress, with a new job-loss bloodbath on top of existing crises, means that apart from thousands of localised initiatives and programmes, we have to respond with urgency and across the board. The Special Covid-19 Social Relief of Distress Grant (SRDG) of R350 per month has offered a survival life-line to millions. But that grant is now due to expire at the end of this month,” said Nzimande.
“We cannot allow this to happen. The SRDG grant which has been going to those who are not covered by pensions, UIF, or as care-givers by the Child Support Grant must now be converted as an urgent priority, into a Universal Basic Income Guarantee. Without this small but desperately needed lifeline many households will fall into deeper distress.”
Nzimande said the SACP is calling for a Basic Income Guarantee that is universal and that is not means-tested to avoid costly administrative overheads.
“Without a Basic Income Guarantee, without each adult in a household being able to contribute to the household income, the impact of all of the Triple H [Hunger Eradication, Health, Human Settlements], plus Water campaigns will be severely limited,” said Nzimande.
The SACP’s call for a basic income grant follows the dismal but not unexpected news of a second quarter 16 per cent GDP collapse and the further loss of 2.2 million jobs, bringing the country’s actual ‘unemployment rate into an entirely unsustainable 50 per cent plus range’.
Across the world, millions of people have lost jobs and livelihoods because of the COVID-19 pandemic.
Many supporters of basic income grant say the only simple and straightforward system that could carry everyone through the crisis is a universal basic income.
During the ANC’s national executive committee meeting in July, Social Development Minister Lindiwe Zulu presented proposals for a basic income grant, hopefully by March next year.
The proposal in the ANC document is that 33 million people, all those between 18 and 59, would receive R500 every month.
The proposal says there would be no means test.
R500 is almost enough money to survive on, the document said, quoting a food poverty line of R591 a month in 2019.
In 2015, 13.8 million people in South Africa fell below this line, according to the document.
At R500 per adult per month, the annual cost of BIG would be R198 billion.
Zulu said that South Africa will introduce a universal basic income grant as part of a range of packages to help the country’s unemployed.
Zulu did not provide details of how the grant would be funded or its size, but told a virtual press briefing it would be paid ‘post-October’.
Last week, the South African Federation of Trade Unions (Saftu) also added its voice to calls for the introduction of a basic income grant as a long-term extension of the Covid-19 financial support currently being offered to South Africans.
SAFTU secretary-general Zwelinzima Vavi said that the social grants currently being offered to citizens was ‘tokenistically low’ and threats to end these increases in October must be withdrawn.
“The Temporary Employee / Employer Relief Scheme (TERS) of R350 a month must be transformed into a Basic Income Grant of R1,500 at least, so as to boost effective demand for all South Africans. A rise in progressive taxation rates would allow a claw-back of all the funding,” said Vavi.
The Black Sash and over 25 NGOS in South Africa have also called on Zulu, President Cyril Ramaphosa and Finance Minister Tito Mboweni to implement the basic income grant.
“We call on the government to fulfil its constitutional and international obligation to provide social security by providing social assistance for those aged 18 – 59, including caregivers who receive the child support grant,” said the NGOs.
The NGOs demand the following:
- Implement permanent social assistance for those aged 18 to 59 valued at the upper-bound poverty line, currently R1 268.00 per month. Caregivers, who receive the Child Support Grant, must qualify for this grant;
- Make the COVID-19 grant increases of R250 per month permanent for all social grants;
- Ensure that the above provisions apply to refugees, permanent residents, asylum seekers and migrant workers with special permits;
- Work towards a universal basic income.
(COMPILED BY INSIDE POLITICS STAFF)
