Welfare services and the Financing policy

Introduction

The White Paper on Social Welfare defines social welfare as "an integrated and comprehensive system of social services, facilities, programmes and social security to promote social development, social justice and the social functioning of people."

The objective of social welfare is to promote the wellbeing of individuals, families and communities. Welfare services are part of a broad menu of social services which aim to enhance the quality of life of South Africans and which provide an enabling environment for women, youth, children, families and the aged to achieve their aspirations

The (3) major social welfare components consist of social security, social welfare services and social development; other components include administration, social assistance, welfare facilities development and auxiliary and associated services.

The need to transform social welfare delivery is stated clearly in the White Paper for Social Welfare. Various instruments have been developed to transform social welfare services and these include the:

Welfare financing policy; Developmental Quality Assurance, new welfare legislation, a comprehensive and developmental policy package. This Financing Policy is one of the most important policy instruments to fast track the transformation of both service delivery and the financing thereof. Demographic information - Socio-economic setting

The following socio-economic indicators reflect the welfare status of the country.

Welfare Status Indicators

BASE YEAR - 1997\98 WELFARE STATUS INDICATOR INDEX

DEMOGRAPHY: TOTAL POPULATION - 42 096 000

FERTILITY: 3,8 MORTALITY 43,1 (per 1000) MIGRATION 6,4 %

AGE DISTRIBUTION:

Under 15 Years = 36,0 % 15 - 64 Years = 59,5% Over 64 years = 4,5 %

POPULATION GROWTH RATE: Population increase = 2,0 %

HEALTH CARE:

Nutritional Status - % of stunted children in rural areas in 1994 = 26.7 %

Number of people qualified for food aid - 28.5% (1994).

Aids (Reported cases) - 8405

Access to medical services:

Whites - 78 % Asians - 29% Coloureds - 26% Blacks - 15%

POVERTY GAP INDEX

50 % of the population

HUMAN DEVELOPMENT INDEX : SA AVERAGE = 0,677

SOCIO-ECONOMIC INDICATORS:

Cross Domestic Product - R482 974 million (1995) CSS

Unemployment rate - Male 22.5 Female 38.0

2 Welfare Budget Allocation

The welfare budget has been increasing over the past three years to the amount of R 16 billion.

Of the total budget R 14 billion was allocated to social security (see table 2) and this absorbs about 90% of the budget. Provinces with the highest population and poverty rate are not getting a fair share of the budget (see table 2)

Table: 1 Provincial Welfare Budget per Capita 1997/98

Province

Population Size

>000'

Total Welfare Budget (R)*

Average Per Capita Budget (R)

Poverty Rate (%)

EC

5 865

2 848 133

485

70.7

FS

2 470

1 024 353

414

63.4

NW

3 043

1 095 942

360

62.1

NP

4 128

1 565 772

403

59.1

MP

2 646

872 013

329

57.3

NC

746

551 139

738

54.9

KZN

7 672

3 353 698

437

51.9

WC

4 118

2 267 236

550

28.0

GP

7 171

2 343 974

326

17.3

TOTAL

37 859

15 922 260

420

50.0

Welfare budgets per province

The provincial welfare budget allocations from the financial years 1995\96 to 1997\98 are depicted below, in Table 3. The total welfare budget has been changing significantly over the years.

Table 2 Total Provincial Welfare Budget Allocations Per Province - (R1'000)

Province

1995/96

%

1996/97

%

1997/98

%

Western Cape

1 956 568

14.72

2 055 285

15

2 267 236

14.57

Northern Cape

385 951

2.9

418 169

3

551 139

3.54

Eastern Cape

2 526 167

19

2 641 018

19

2 484 133

15.97

Mpumalanga

670 423

5.04

705 582

5

872 013

5.6

Free State

827 878

6.23

887 771

6.3

1 024 353

6.58

KwaZulu-Natal

2 880 306

21.67

3 091 383

22

3 353 698

21.56

Northen Province

1 376 669

10.36

1 487 084

11

1 565 772

10.06

North-West

879 914

6.62

1 026 343

7.3

1 095 942

7.04

Gauteng

1 788 667

13.46

1 788 667

13

2 343 974

15.07

TOTAL

13 292 543

100

14 101 302

100

15 922 260

100

3 Welfare services

The Constitution stipulates that social welfare is a shared responsibility between the national and provincial spheres of government.

It is estimated that there are up to 10 000 organisations in civil society with a welfare and development focus. They are based in either the formal welfare sector receiving government financing or what is popularly referred to as the informal welfare sector, and are currently not government subsidised.

3.1 Case work - counseling

The total number of cases which were handled in the nine provinces for 1997/98 were 792 260.The most predominant problems in the country are supervision, failure to maintain children, family conflict, material need and legal aid. These problems are the consequences of socio-economic hardships experienced in the country.

3.2 Welfare facilities

These are facilities aimed at providing services to individuals, children, adults, aged, homeless, disabled and needy in the country. Table 11.2 indicates the number of beds provided for in welfare facilities.

Table 3 Welfare Facilities (Capacity)

PROV

Priv. Crèches not sub.

Priv. Crèches sub.

Places of

Safety

Homes

Disabled

Prot.

Work-

Shops

Homes

Aged

Sub.

Homes

Aged

Gov. run

Childrens Homes

Shelters Street

Children sub.

TOTAL FACILITIES

3506

2000

37

95

149

409

7

144

32

TOTAL CAPACITY

196817

41657

2179

5521

13010

28572

426

10700

818

 

Shelters Street Children not sub.

Shelters After Care

Hostels

Missions Registerd

Drop In Centres Reg.

Drop In Centres Not Reg

Secure

Care

Centres

Reg.

Stimulation Centres Reg

Drug Treatment Centres – Priv

Gov. Treatment Centres

TOTAL FACILITIES

41

1

6

2

2

36

17

19

0

TOTAL CAPACITY

1572

26

3115

61

126

34

1125

1053

0

There is a total number of 6503 Welfare facilities which caters for 306812 persons, of which the highest number is attached to crèches namely 196,817 followed by, 87 828 in homes for the aged, 39 194 in Service centres, 28 572 in Protective workshop and 13 010 in children=s homes

3.4 Welfare personnel

Table 4 indicates the distribution of personnel in the country according to the different personnel categories, racial gender and spacial distribution both in government and private organisations subsidised by the Department of Welfare.

TABLE 4: Summary personnel - all categories

Personnel Category

Male

Female

Total

Black

White

Coloured

Asian

Government Admin Personnel

770

1127

1950

941

412

471

127

Government Professional Personnel

423

1754

2179

1311

395

327

86

Gov. Social Security Personnel

737

663

1400

814

259

123

204

Personnel- Gov. Facilities

589

1097

1694

1024

242

304

99

Personnel- private Welfare Organisations

142

1372

2474

187

466

74

0

Personnel- private Welfare Facilities

0

0

7585

0

0

0

0

Total

2661

6013

17282

4277

1774

1299

516

The total number of personnel in the provincial welfare departments is 17 282. Of the total 6013 are females and 2661 are males. A large number of personnel are black 4 277, followed by white 1 774, coloured 1 299 and Asian 516.

There are 5 529 personnel in provincial welfare departments (combination of professional, administration and social security personnel) as compared to only 2 474 in private welfare organisations.

There are more personnel in private welfare facilities 7 585 than in government welfare facilities 1 694.

3.5 Social development and community work projects

Table 5 and 6 gives an overview of different community work and social development projects run by the government and private organisations in the country in an effort to combat problems experienced by the communities. The community projects focussed on income generation, capacity building, life skills, job creation and literacy.

Table 5 Social Development and Community Work Projects: Government

Province

Poverty

Drug-dep.

Children

Women

Youth

Disabled

Street

Children

Elderly

Aids

Crime

TOT

EC

0

0

0

930

0

0

0

0

0

0

930

WC

612

236

354

371

491

0

0

70

140

197

2471

NC

378

280

1021

367

380

1712

0

178

0

14

6801

FS

1572

235

18310

1131

1080

337

146

1745

300

2755

27611

GP

0

0

0

0

0

0

0

0

0

0

0

KZN

7581

170

3519

2792

3905

445

103

1104

656

73

20618

MP

1425

13

57

417

486

322

49

1255

32

0

4056

NW

94

0

2

21

7

13

3

0

0

0

140

NP

28

0

0

0

0

0

0

0

0

0

28

TOT

11690

934

23263

6029

6349

2829

301

4352

1128

3039

59914

*All 0 information is not available.

There is a total of 59 914 people who participated in community projects run by government welfare departments.

A large number of children 23 263 participate in community or social development projects aimed at dealing children=s problems. 11 690 people participate in projects addressing poverty and related issues. 6 349 youth participate in youth projects and 6 029 participates in projects dealing with issues affecting women.

Table 6 Social Development and Community Work Projects: NGO=S & CBO=S

Province

Poverty

Drug-dep.

Children

Women

Youth

Disabled

Street

Children

Elderly

Aids

Crime

TOT

EC

0

0

0

0

0

0

0

0

0

0

0

WC

27110

12110

60515

19345

49118

13539

4547

7018

3063

19737

216102

NC

0

0

0

0

0

0

0

0

0

0

0

FS

928

1129

7604

1611

3705

2144

38

1189

777

3525

22649

GP

0

0

0

0

0

0

0

0

0

0

0

KZN

44654

2839

66441

14739

18724

38701

1063

27770

30168

6936

252035

MP

5870

14951

18411

2403

7219

622

504

1207

86

1096

38913

NW

0

0

0

0

0

0

0

0

0

0

0

NP

73

0

0

0

1

0

0

0

0

0

74

TOT

78635

17573

152971

38098

78767

55006

6152

37184

34094

31294

529774

*All 0 information is not available.

There is a total of 529 774 people who participated in the community projects in the private welfare organisations.

A large number of children 152 971 participate in projects for children in the private welfare organisations like in government sector. 78 767 participate in projects aimed at youth and related issues. There is also a large number of participants 78 635 in poverty projects. Participation is also high in projects for the disabled 55 006.

  1. Financing policy

4.1 Problems in the existing partnership

Welfare financing at present is based on a subsidy system in which government is considered to be a funder of services and not a purchaser of services. The current financing system is based on transfers to organisations who provide services to a particular client group (eg organisations dealing with substance abuse or providing services to older people) and is not aligned with new priorities to - inter alia - provide a wide range of services from a single point.

Problems and challenges for welfare partnerships include fragmentation, the duplication of services (and resulting inefficiencies), a lack of human resource capacity and physical infrastructure (which contributes to an inability to meet the range of society’s needs), and weak inter-sectoral communication and collaboration. In some instances there has been inadequate financial accountability and discipline.

Given the diversity of stakeholders in the welfare field, there is a wealth of knowledge, skills and resources which could and should be harnessed by government and its partners within a restructured welfare system.

    1. Aims of financing policy
The financing policy aims to:
  • meet government’s agenda to address and eliminate the current imbalances in services to citizens
  • include service organisations previously excluded from receiving financial assistance from the state
  • target financing to the highest strategic priorities
  • promote equitable distribution of finances, services and infrastructure
  • include flexible and varied financing options
  • facilitate the emergence of a network of accessible services for all in need
  • promote the capacity and sustainability of organisations

4.3 Financing options

The following financing options will be applied in combination or on their own:

  • financing of differentiated services
  • financing in phases
  • financing to support early development of a programme or project
  • project financing
  • transfer of lump sum
  • linking social assistance
  • outsourcing
  • venture financing
  • service purchasing
    1. Types of services to be financed

The following types of services will be financed:

  • Direct services
  • Policy, management, co-ordination and monitoring of services
  • Capacity building, research and advocacy services
 

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