City avails R5,1 bn to help qualifying residents with rates and service costs

20 August 2025

The City has availed more than R5,1 bn in rates and service assistance to qualifying residents. Indigent residents who have previously benefitted are encouraged to apply for help now. Pensioners who have benefited previously only need to apply every three years, from the General Valuation year. They will need to reapply after the General Valuation next year. Council also approved a debt write-off initiative of approximately R2,2 billion in old debt for qualifying beneficiaries.

‘This metro is lauded annually by national and international bodies for its good governance and responsible debt management practices and this is important as it is the only way to make sure top levels of service delivery can be achieved. Therefore, ensuring that the more vulnerable residents in our city have access to financial support, such as our indigent residents, pensioners and social grant recipients, is a key focus of our sound governance and creating a culture of payment to make sure that large volumes of uncontrolled debt does not harm the operation of the metro.

‘It is also our aim as a caring city to offer whatever help we can give to our qualifying residents who need a bit of help. Importantly, if residents do not approach us for assistance, we are not able to help. Those who come forward to ask for help show great strength and foresight and we laud all our residents who apply for assistance every year. Every bit helps. I urge our residents to please phone our call centre to find out what they need to apply for assistance ahead of going to the walk-in customer offices. Our website also has a wealth of information and tips on what is required. Our indigent residents must apply every year while our indigent pensioners and social grant recipients only need to apply every three years, as it coincides with the cycle of the property General Valuation. Importantly, the next General Valuation is in 2026 and our elderly residents will thus be reminded next year to apply for their benefits and discounts.

‘Currently we also have an active debt write-off initiative for qualifying residents struggling to make ends meet and also to improve the financial sustainability of the metro by encouraging a culture of payment. The City is offering additional relief to residents in the form of debt remission for municipal debt outstanding for periods prior to and including 30 June 2024. This is on condition that they enter into a six-month payment arrangement to settle the remaining debt.
 
'The debt remission initiative is available for residents and certain institutions. Council approved debt relief for qualifying customers who own residential properties valued between
R450 000 and R7,5m, as well as those on pension and social grants. Outstanding interest has previously been written off for qualifying City customers and they are encouraged to either settle their debts in full or enter into a payment arrangement,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
 
The City offers several types of assistance for individuals and organisations including:
• Pensioner and social grant recipient support
• Indigent support
• Free water and sanitation for old age homes and shelters
• Free electricity on the Lifeline tariff
 
Expanded relief measures adopted in the 2025/26 Budget:
• ‘First R450 000 rates-free’ benefit extended: to homes valued up to R7 million (up from R5 million)
• More pensioners and social grant recipients now qualify for rates relief and lifeline electricity

Pensioner, social grant recipients: Rebates on property rates and City-wide cleaning

• Significantly reduced city-wide Cleaning charges for all residential properties under R20 million
• Lower fixed water charges for property value bands between R1 million and R25 million.
 
Special Price Protection continues
• Lifeline customers using 600 units p/m still pay roughly the same as they did three years ago.
• Customers need to stay within the 450-unit monthly average over 12 months to remain on the Lifeline tariff.
• Lifeline customers receive either 25 or 60 units Free Basic Electricity if they have a prepaid meter installed depending on consumption level. Contact us to get your meter on 0860 103 089.
 
For more details on relief options: https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates
 
Assistance is available, please contact us for more information:
Call centre: 0860 103 089
Debt write-off: payment.arrangements@capetown.gov.za
Rates rebates: rates.rebate@capetown.gov.za
Indigent help: indigent.relief@capetown.gov.za
 
 
End

Published by:
City of Cape Town, Media Office