At all costs?: applying the means test for the Child Support Grant

Summary: This paper estimates the cost of the means test for the Child Support Grant (CSG) in South Africa to Government and to applicants.

The main findings include:

• the mean cost to the government (DSD and SAPS) of applying the means test is estimated at R165 020 million under the current regulations
• the average cost to CSG applicants, in complying with the requirements of the means test, is R25. This covers transport to social services offices, police stations and Home Affairs offices; photo-copying costs and small opportunity costs in respect of those who forego income-earning activities. The estimated average time spent by applicants on activities that relate in some way to the means test is close on eight hours.

The paper demonstrates that an analysis of the characteristics of those deemed to be eligible and those actually receiving grants, suggests that it is children who do not have their biological mother as their PCG who are most likely not receiving the grant, even when eligible. It also highlights that the cost of the means test should be incurred only once in respect of each child if the caregiver remains the same over the period that the grant is received. The total cost would thus not be incurred in a single year. Ideally, the costs should be incurred only in respect of children born in a particular year. In real life, however, caregivers change, especially in a situation where HIV/AIDS is rampant and where PCGs have had to re-apply for the children in their care as a result of the staggered roll-out of the CSG extension.

[Source: ELDIS]