Social Grant for Youth – some policy options: Framework On Social Security For Youth In South Africa

Human Sciences Research Council report submitted to National Department of Social Development March 2012

South African youth experience extremely high levels of unemployment and poverty. Currently there is no social assistance for low-income young adults, unless they are disabled. Interventions are needed that can achieve widespread poverty alleviation, as well as facilitate economic participation to improve lifelong earnings. Altman et al. consider six examples of social security policy options, including five grants. The grants range from an unconditional non-means-tested grant for young people to a conditional grant for young people in training or education, to an ‘opportunities voucher’ that is administered through the social security system but paid to organisations offering education or work opportunities to young people. Using a tax and benefit micro-simulation model to simulate the five grants, the paper estimates the potential numbers reached and the cost, as well as the impact of these six options on poverty.