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The City is helping residents with their municipal debt and encourages customers to make use of the support available to lighten the load, increase the culture of payment and make sure the metro’s debt levels stay stable to enable service delivery. Council has approved the debt write-off of approximately R2,2 billion in old debt for qualifying residents. Furthermore, qualifying indigent residents, pensioners and social grant recipients are encouraged to make use of the availed R5,1 bn in financial relief.
The City’s debt write-off initiative is a special programme designed to support struggling residents across the metro. It offers additional relief through the remission of municipal debt incurred up to and including 30 June 2024. To qualify, residents must enter into a six-month payment arrangement to settle their remaining balance.
‘Since announcing the special R2,2 billion debt write-off initiative, we’ve seen tremendous interest from residents in the support available. We encourage more residents to contact us to check whether they qualify for assistance. The debt remission initiative is open not only to residents, but also to institutions such as places of worship, old age homes, cemeteries and crematoria, non-profit and public benefit organisations, animal shelters, facilities providing accommodation for the vulnerable, local community museums, social housing providers, and youth development organisations. In addition to the debt write-off initiative, we are also offering a R5,1 bn social support package for qualifying indigent and pensioner/social grant recipients. In total, we are availing some R7,3 bn to assist residents and organisations.
‘Our dedicated officials at the City’s Customer Interaction Centres are ready to assist, and we encourage all residents to find out more about the support available. The City remains committed to improving its services and finding new ways to assist residents in need of help,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
The debt remission initiative is available to:
- Owners of residential properties with a municipal valuation between R450 000 and R7 million
- Indigent customers who have already received a once-off debt write-off, and still have outstanding debts and are required to renew their indigent application
- Places of worship
- Old age homes
- Cemeteries and crematoria
- Non-profit organisation
- Public benefit organisations
- Animal shelters
- Accommodation for the vulnerable
- Local community museums
- Social housing and youth development organisations
Aside from the special debt write-off initiative, 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 and phone 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:
Debt write-off: payment.arrangements@capetown.gov.za
Rates rebates: rates.rebate@capetown.gov.za
Indigent help: indigent.relief@capetown.gov.za
Call centre: 0860 103 089
Read the full article on the City of Cape Towns website here.