Answer to Question #214760 in Finance for judas

Question

critically discuss the effects of social grants on incomes and welfare?

Answer 1

Social grants are an effective tool for reducing income inequality and promoting social welfare. Social grants raise income levels with their associated increase in par capita household income. They form a large part of the income for households living in poverty and therefore contribute to bridging the huge gap caused by income inequalities.

Social grants increase social welfare in society and are therefore a key dimension of individual and social wellbeing. They alleviate the high levels of poverty and enhance the wellbeing of various disenfranchised groups in society in areas such as food security, unemployment, vulnerable children, education, mental health care, people and children with disabilities and health care services. For instance, child support grant significantly contributes towards meeting children's constitutional rights in the society. Children whose families benefit from social grants and family support interventions enjoy better health, nutrition and schooling.