From December, child social grant recipients will no longer be allowed to use the money for services such as funeral policies, unless it benefits the child.
The South Africa Social Security Agency (Sassa) says it has noticed a trend where child support grants are being used for products and services that have nothing to do with the child.
Sassa spokesperson Paseka Letsatsi says the intention behind the ban is to ensure that all child grants, including foster child and care dependency grants, should be used for the benefit and need of the child alone.
Sassa will no longer allow deductions to be made for funeral policies.
He admits that while the intervention will not stop the general misuse of grants, it will go a long way in ensuring the money is used for its intended purpose.
He said in some cases, Sassa has found that people take out “four to five funeral policies” on the grant of one child.
“It basically means the child is carrying the burden of the family.”
Meanwhile, Sassa says it has also seen a drop in the number of illegal deductions since it started clamping down on the practice.