Impact of government support programmes on household welfare in the Limpopo province of South Africa

Abstract

ABSTRACT This study employed the compensation variation (CV) and propensity score matching (PSM) methods to analyse the impact of government support services and programmes on the welfare of households. The findings revealed that government support programmes, such as Reconstruction and Development Programme (RDP) support, social grants and government-subsidised houses, impact positively on the welfare of households in low- and middle-income classes in the Limpopo province. The findings further revealed that welfare gains of households in the low-income category are higher than those of households in the middle-income category. Moreover, it was found that the ownership of assets such as a television or a motor vehicle, which are associated with routine maintenance, monthly subscription fees, fuel and other costs, significantly reduce the welfare of households in the low- and middle-income categories. The study concludes that these programmes should be sustained and extended to other non-beneficiary households if the aim is to improve household welfare and better the standards of living.