The Department of Social Welfare and Development (DSWD) is gearing up to distribute enhanced cash grants under the Pantawid Pamilyang Pilipino Program (4Ps) by 2025.
DSWD Assistant Secretary JC Marquez shared that the agency is focused on developing a proposal this year, in collaboration with the National Economic and Development Authority (NEDA), Philippine Statistics Authority (PSA), and Philippine Institute for Development Studies (PIDS). The proposal aims to increase the cash grants for 4Ps beneficiaries, considering the impact of inflation.
“We hope to finalize the proposal this year and implement it next year,” Marquez said in an interview on Unang Balita.
The DSWD is carefully studying the adjustments needed to address the rising cost of living. The proposed increase in cash grants will be determined through discussions with relevant agencies and organizations.
“We are still in the process of studying the proposal thoroughly with the aforementioned agencies. Once completed, we will share the details with you,” Marquez added.
The PSA reported a 3.9% rise in consumer goods and services prices in May, marking the fourth consecutive month of inflation increase. This brought the year-to-date inflation rate to 3.5%, within the government’s target range of 2% to 4%.
Currently, the 4Ps program supports 4.4 million households nationwide. As of the first quarter, the DSWD identified 700,000 households as self-sufficient, making them eligible to graduate from the program.
Key Insights on the Proposed Increase
The current maximum annual cash grant under 4Ps is P14,524 per household, down from P31,200 in 2019 due to the effects of COVID-19 lockdowns and high inflation.
This represents a 53% reduction in real value.
To help beneficiaries cope with the rising cost of living, PIDS recommended a 20% increase in the grants.
This adjustment would raise the maximum annual grant to approximately P17,400.
The DSWD has approached the Department of Budget and Management (DBM) to secure funding for the proposed increase in the 2024 national budget.
The hope is that Congress will include a special provision to allow augmentation from unprogrammed funds.
For 2022, the 4Ps program aimed to cover 4.4 million households with a budget allocation of P112 billion in the proposed 2024 budget.
Increasing the grants by 20% would require an additional P22.4 billion in funding.
Financial Literacy and Inclusion Efforts
The Bangko Sentral ng Pilipinas (BSP) supports the DSWD’s efforts to promote financial literacy and inclusion among 4Ps beneficiaries.
Despite the cash grants, only a small portion of beneficiaries are able to save and invest.
To address this, the DSWD has mandated financial literacy training for all 4Ps beneficiaries.
This training is essential for accessing their cash grants through transaction accounts.
Catch the full interview with DSWD Asec JC Marquez, Co-spokesperson in the video below:
Conclusion
The DSWD’s plan to increase 4Ps cash grants by 20% aims to help beneficiaries manage the high inflation and restore some of the lost real value of the grants.
However, this move requires additional funding and is dependent on approval by Congress and the DBM.
Complementary efforts to enhance financial literacy among beneficiaries are also underway so that they can use the grants effectively and secure a better future.
By prioritizing the well-being of Filipino families, the DSWD continues to strive for a more inclusive and supportive social welfare system.