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Expanding Financial Relief for Struggling Residents in Cape Town

July 26, 2023

1 min read

The City of Cape Town is taking steps to assist citizens facing financial difficulties, by offering relief measures to households in need. These measures are available to indigent households, social grant recipients, and pensioners. The City now offers an increased social support package of R4.3 billion for rates and services relief in 2023/24.

Qualifying for Assistance

To determine eligibility for assistance, residents are encouraged to visit the nearest customer office. However, before reapplying for support, it is essential to clear any outstanding dues owed to the City. Once registered as indigent, individuals only need to reapply every 12 months from the approval date. Applications for residents aged 60 or older remain valid until the next municipal property valuation takes effect.

Raising the Qualifying Limit

Councillor Siseko Mbandezi, the City’s Mayoral Committee Member for Finance, announced that the qualifying limit for pensioners and social grant recipients has been raised to a monthly income of R22,000, up from R17,500. With the social support package increased, Cape Town offers the highest allocation of free water at 15kl, free sanitation at 10.5kl, and up to 60 free electricity units in South Africa.

Full Rebate for Property Rates and Refuse Removal

Under the new system, households with a monthly income below R7,500 and owners of residential properties valued at R450,000 or less will receive a full rebate for property rates and refuse removal. This change is expected to benefit around 192,500 families across Cape Town.

Adjusting the Electricity Lifeline Tariff

The electricity Lifeline tariff has also been adjusted to cater to households using between 350 and 600 units. The new rate, R1.84 per unit, is considerably lower than the previous R3.15 per unit in 2022/23. This change aims to protect households using more electricity during the winter while still maintaining the average usage of 450 units over a 12-month period.

Qualifying for Indigent Support

To qualify for indigent support, applicants must be homeowners, earn less than R7,500 per month, own only one property, and be the full-time occupant of the home. Additionally, the home should be mainly used for residential purposes. Various forms of documentation are required depending on the applicant’s employment status.

Managing Household Bills Efficiently

To manage household bills efficiently, residents are advised to reduce geyser temperature to 60 degrees Celsius, buy electricity in smaller amounts to stay within the cheaper tariff band, and limit purchases to below 600 kWh per month.

Contacts and Information

Various contacts and information are available for those interested in rates or services relief, pensioner rates relief, payment arrangements, and finding a list of the City’s Cash Offices and Walk-in Centres.

By offering these relief measures, the City of Cape Town demonstrates its commitment to supporting its citizens during challenging financial times.

Serjio Zakharoff
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A Russian-Spanish journalist and Cape Town native, channels his lifelong passion for South Africa into captivating stories for his local blog. With a diverse background and 50 years of rich experiences, Serjio's unique voice resonates with readers seeking to explore Cape Town's vibrant culture. His love for the city shines through in every piece, making Serjio the go-to source for the latest in South African adventures.

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