The Social Development Department believes it could save a R1 billion if it eradicates fraudulent grant claims.
The department has revealed its investigating hundreds of thousands of beneficiaries.
On Wednesday it said if it was successful in cutting out the graft, money would be available to hike the child support grant further this year.
The University of Cape Town’s Children’s Institute on Wednesday told members of Parliament it was happy that the child support grant was being extended to all children under eighteen.
However, it said the latest below-inflation hike of R10 was unacceptable.
"Think about your own children and grandchildren. Two hundred and fifty rand does not cover the cost of raising a child. Not even close," said the institute’s Lucy Jamieson.
Social Development’s Selwyn Jehoma said the department was considering increasing the grant again in October, but that would depend on how many fraudsters they cut out of the system.
"Where it is found that indeed based on the information that we have that they should be off the system, it could very well be that the amount of money saved could exceed R1 billion."
Jehoma added that people found to be defrauding the system will be cut off immediately.