Pensioners not happy with grant increase

#Budget2016 / Cape Town - The old age, disability and care dependency grants will rise by R80 to R1 500, the child support grant will increase by R20 to R350 and the foster care grant by R30 to R890 from April 1.

Finance Minister Pravin Gordhan announced that social grants will increase from R129 billion to R165bn.

Read: No surprises in #Budget2016

Mitchells Plain pensioner Achmat Avon, 69, said the R80 increase would not go far in helping to pay his monthly rates or to buy food.

“I have to pay R100 per week for food alone and this is besides the R80 I have to pay for electricity. Many nights I go to bed with just black coffee,” said Avon.

He was forced to retire from his job in upholstery more than five years ago after suffering a stroke.

Illness also forced Latiefa Jaffer, 58, from Mitchells Plain, to retire after her leg was amputated because of diabetes. Her disability grant is the main source of income for her, her three children and four grandchildren. Jaffer said the R80 would be of little use to her and her family.

Her daughter Rukea Jaffer, 25, is the only other person in the family who works, bringing home R700 a month. Jaffer says their money does not cover their expenses like food, electricity and rent.

Jaffer’s other daughter, Ravia, 23, left her job to look after her when she lost her leg. Ravia’s three children get some maintenance from their father.

Rukea Jaffer said some months they borrowed money to get by.

“Because I work at a butchery I see how much the price of meat has increased recently. You really don’t get much meat for R20 anymore these days,” said Rukea.

While grant recipients are not happy with the increase, millions of taxpayers can breathe a sigh of relief after Gordhan announced R5.5bn in tax relief.

Milnerton hair salon manager Debbie Gessen is happy that her tax will not increase. She pays about R2 000 a month in tax.

“With the increase in the interest rate, the monthly cost of my car also went up. Should there have been an increase in personal income tax, my family and I would really have had to tighten our belts. To save electricity we already bought an induction stove and cut down on holidays,” said Gessen.

nicolette.dirk@inl.co.za

CAPE TIMES

Be sure to follow #Budget2016 developments on Business Report as we bring you news, reviews, analysis and opinion regarding Finance Minister Pravin Gordhan's speech on February 24 and 25.