The South African Social Security Agency (SASSA) has reported a R4.8-billion underspend for the 2025/2026 financial year, failing to distribute a significant portion of its R285.9-billion budget. Despite the allocation of these funds to support vulnerable citizens, the agency ultimately spent R281.1 billion, leaving billions of rands in the national coffers while many elderly South Africans struggle to afford rising costs for food and healthcare.
Financial Oversight And Policy Constraints
SASSA has attributed this consistent pattern of underspending to intensified verification processes and a decline in the uptake of specific grant categories. These measures include comprehensive biometric authentication and rigorous data cross-referencing with both the South African Revenue Service (SARS) and various credit bureaus to eliminate fraudulent claims.
This follows a similar trend noted in the 2022/2023 financial year, when the Auditor-General identified a R4-billion underspend largely linked to the Social Relief of Distress (SRD) grant. The introduction of stricter means testing for grants has been defended by the government as a necessary step to ensure fiscal responsibility and prevent the misappropriation of state resources.
Impact On Vulnerable Communities
For many grant recipients, these administrative hurdles fail to account for the harsh economic realities of inflation, which frequently outpaces the modest annual adjustments to state support. As of July 2026, the Older Persons Grant stands at R2,400 for those aged 60 to 74, and R2,420 for beneficiaries older than 75.
Pension must be equal to minimum wage. How can you expect the elderly not to have the same costs as workers, especially when they need more healthcare? They still pay rent and still need to eat.
This perspective from grant recipient Andrea Kruger highlights the disconnect between current grant structures and the rising costs of living faced by households across the country. Civil society groups have continued to call for a review of how these funds are allocated, arguing that failing to reach those in need undermines the core purpose of the social security system. The matter is currently under review by the parliamentary portfolio committee, with stakeholders waiting for a clearer strategy on how to address the service delivery gaps.