Cape Town - As the City of Cape Town launched its indigent benefits and rates relief campaign drive with an improved budget, lobby group Stop CoCT has called on it to review its tariffs-setting policies to make services affordable.
The City has increased its social relief budget from R3.3 billion in 2021/22 to R4.7 billion this financial year.
This relief includes R2.3 billion for indigent relief and R1.45 billion for rates relief, and the City has encouraged residents to apply for this R4.7 billion social relief.
The City said that currently, more than 40% of Capetonians benefited from financial rates and service relief.
Finance Mayco member Siseko Mbandezi said those who qualified, or had qualified, needed to apply yearly for the benefit, except if they were pensioners.
“Residents are also reminded that the debt write-off incentive is still available. With these engagements, we want to ensure that all qualifying residents successfully apply for the various forms of assistance that are on offer,” he said.
Stop CoCT founder Sandra Dickson said the 42% increase in the social package from 2022 to 2023 was indicative of the City’s aggressive tariff increase policy which she said had little relation to what ratepayers can afford.
“According to the City of Cape Town’s admittance, around 40% of Capetonians simply cannot afford to pay their municipal bills. We now have a situation where the R4.7 billion off social support is almost 10%, which is a significant portion of the City’s annual budget.
“The red lights should be flashing in council and the finance department. This type of social package is unsustainable and the City should seriously review its tariffs-setting policies and consider making its services affordable to all Capetonians,” she said.
Dickson said if the status quo continues, more Capetonians would continue to be humiliated and live through hardship because they cannot pay their municipal bills. She said the red tape was debilitating and the renewal every three years was ridiculous.
“The administrative burden and cost on the City must be huge. They make 40% of ratepayers beggars. Every year, the City increases its social package for the indigent and rates relief.
“This year it was increased by R2.4 billion, which is a 42% increase from last year’s amount with the amount of R4.7 billion also including the amount available for free basic services to informal settlements,” she said.
Bo-Kaap Residents Association chairperson Osman Shabodien, who welcomed the roll-out of the campaign, encouraged residents to take up the opportunity, which he said would give them relief from the high cost of living.