The means test for social assistance grants and its recent evolution

Abstract

1. INTRODUCTION
Social assistance relates to that part of the social security system which provides material support to certain eligible categories of persons based upon need rather than contributions. South African social assistance programmes are relatively large for a developing country; currently, about RI 8 billion (2½ % of GDP) is spent annually on such social transfers to households. They contribute substantially to income of poor households and, of all social programmes, are best able to reach the rural poor. But the interaction between private income sources and social grants complicates the economics of S(?Gial assistance, as means tests potentially affect incentives and behavioural responses to social grants.