Cash Disbursements for SASSA Grants To Stop at Post Office
South African Social Security Agency (SASSA) recently announced a major change for grant beneficiaries. Starting from January next year, recipients will no longer be able to withdraw cash at Post Offices. This decision affects around 19 million permanent grants, including pensions, disability grants, and other forms of support.
Phasing out cash payment points
Working together with the Postbank, SASSA plans to gradually phase out all physical cash payment points, including cash withdrawal services at Post Offices. This transition is set to begin in January and be completed by March 2024. The objective is to ensure seamless payment continuity while addressing security and capacity issues.
Background and Strategy
The decision to discontinue cash payments was initially revealed in 2018 as part of a larger strategy to reduce cash-in-transit heists, tackle unfavorable conditions at payment sites, and overcome capacity challenges at the Post Office.
Services retained at Post Offices
While cash payments will no longer be available, Post Office branches will still provide non-cash services such as card reinsurances, PIN resets, and statement printing.
Alternative cash withdrawal options
Despite this change, SASSA grant beneficiaries will still have the option to withdraw cash at ATMs or specific retailers like Boxer, Pick N Pay, Spar, Shoprite, Usave, and Checkers.
Usage of SASSA Gold Cards
SASSA gold cardholders who previously used cash payment points and Post Office branches will now need to use their cards at any location accepting bank cards. This includes making purchases at retailers with point-of-sale systems or withdrawing funds at retailers offering cash-back functionality.
Impact on beneficiaries
SASSA claims that 98% of grant beneficiaries already use alternative methods, but critics like the Black Sash organization argue that the decision lacks proper research and consideration. Concerns include increased transportation costs, delays at alternative payment sites, and withdrawal fees.
Financial struggles at the Post Office
This announcement is in line with the Post Office’s financial challenges, which have resulted in a R6 billion loss over the past three years. The business rescue plan includes closing 420 unprofitable branches, laying off 6,000 employees, and potentially receiving a R3.8 billion government bailout.
Validity of SASSA Gold Cards
Contrary to concerns, SASSA gold cards will not expire in December 2024. They will remain fully valid and operational in 2024, ensuring continued access for grant beneficiaries.
