Abstract
The coverage gaps within South Africa’s
social security system combined with the
structurally low rate of take-up of the Child
Support Grant (CSG) underscore the need for
comprehensive reform. The nature of structural
unemployment in the face of a changing global
economy that marginalises unskilled workers
expands the necessary scope of a social safety
net. Not only do children, retirees and the
disabled need social protection—millions of
potential workers are vulnerable to unemployment
and the resulting impoverishment.
Using a household-level micro-simulation model ,
this paper evaluates the social impact of
reforming the social security system through the
provision of universal grants. In light of the
low take-up rates of the CSG, the paper begins by
analysing the impact of the extension of the CSG
with a universal grant. The second main part of
the paper analyses the social impact of a Basic
Income Grant.
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