• Within the government's medium term strategic framework the priorities of the Cluster and therefore the Department seek to give effect to:

1. Promoting opportunities for participation of marginalised communities in economic activity, and improving the quality of livelihoods of the poor

2. Maintaining a progressive social security net, alongside investment in community services and human development

3. And also significantly by improving the capacity and effectiveness of the state by promoting service oriented public administration

• Through the Expanded Public Works Programme labour-intensive methods are promoted in areas of expanding public service delivery and skills development programmes. In this context we are expanding

- Home Community Based Care in collaboration with Department of Health

- Access to Early Childhood Development in collaboration with Education

- Rollout of the new financial awards policy reflects our commitment to increase financial support to involve civil society and to ensure equity in resource distribution for community participation

Maintaining a progressive social security net...

• From covering just over 3,5 million beneficiaries in 2000, social assistance grants to the elderly, people with disabilities and to support vulnerable children now reach more than 10 million beneficiaries.

• Old age grants reached 2,1 million elderly (close on 97%), 1,2 million people with disabilities, and over 6,5 million children are reached through the CSG, care dependency and foster care grants

• Coverage of all these grants will stabilise over the MTEF as it reaches almost all the target groups

... investment in community services and human development

• Strengthening of developmental and social welfare services:

• Rollout of a new service delivery model for welfare services
• Recruitment and retention of social workers and other Social Services Professionals

• Implementation of the new pieces of legislation, i.e. Older Persons' Bill, Children's Bill & Child Justice Bill will expand the support to the vulnerable

• Community mobilization and capacity building to support communities to become self reliant

- We will continue working with the Department of Justice and Correctional services to divert children and youth in conflict with the law

Improving the capacity of the state

• Institutional reform of the social security service delivery system:

• Establishment of the Social Security Agency to improve the grants administration

• To replace and enhance the information management, payment and technological systems

• Implementation of Fraud Prevention & Eradication Strategy

- All these contribute to our objective of effective targeting and promote a service-oriented public administration

SPENDING TRENDS IN SOCIAL DEVELOPMENT BUDGETS

· Consolidated social development spending grows from 1(23,8 billion in 2001/02, to R59 billion in 2005/06 (average nominal growth of 28,8%)

• This expenditure grows to R72,6 billion in 2008/09 at an annual average growth rate of 11 ,6%.

• The largest portion of this spending is on social assistance, which consumes an average of 92% of total social development budget

• Social grants spending, which becomes the responsibility of the Agency, is projected to increase to R65,5 billion in 2008/09.

• Spending on other social development services has been growing at annual average rate of 16,4% (R2,3 billion in 2001/02 to R4,5 billion in 2005/06)

• Additional allocation above the baselines of provinces are made to fund the expansion of welfare services, HCBC, ECD and other development initiatives

• Allocations provided for in the MTBPS are about R990 million in 2006/07, then R1,6 billion in 2007/08 and R2,5 billion in 2008/09

Additional Allocations in MTBPS

• The Social Sector notes that up to R20 billion will be added to the provincial equitable share for the expansion of education, health and social development

• This allocation is welcomed in the context of the need to invest in infrastructure, reflecting a commitment of government to expand social services

• The Department concurs that the allocations for welfare services will allow provinces to expand social welfare services at a rapid pace, given the constraints of social grants extension.

MTBPS and Welfare Services

• Indications from the MTBPS are that significant funding will be available for welfare services. This is a timely move, creating the space for provinces to expand services for care to the elderly, disabled people, those affected and infected by HIV and Aids

• We commend the allocation of R4,2 billion for the services components of the LPWP that will create employment for those falling through the gaps in the social safety net and further skills development to engender self reliance

• Concerns: little commitment is made to fund the role that the national department must play to support provinces in the expansion of these policy priorities, especially since two of the grants will no longer be conditional

Adjustments in MTBPS: Grants

• The Department welcomes Treasury adjustments to social assistance baselines but is concerned that it may not be sufficient as growth in foster care continues to put pressure on transfer budgets

• Adjustments provide limited space for further progressive realization of access to socio-economic rights

• The new social development services delivery model will ensure proper budgeting & increased allocation for other social services over the medium term

THANK YOU