Finance Minister Enoch Godongwana announced in the 2025 Budget Speech that social grants distributed by the South African Social Security Agency (Sassa) will increase above inflation.
He stated that the adjustments aim to protect vulnerable households from the rising cost of living.
However, civil rights group Black Sash highlighted that several grants, including the Child Support Grant and the Social Relief of Distress (SRD) grant, remain below the food poverty threshold. The SRD grant saw no increase, while the Child Support Grant continues to fall short of the R796 Food Poverty Line.
Despite the increases, Black Sash expressed concern that grants remain insufficient to cover beneficiaries' basic needs, exacerbating food insecurity and poverty.
Godongwana also proposed a 1% Value Added Tax (VAT) increase over the next two financial years, with an initial 0.5% hike in April and another in 2026.
Black Sash opposed the proposal, stating, “We categorically do not support any form of VAT increase, as it places an unfair burden on those who are already struggling to make ends meet.”
The organisation urged the government to explore progressive tax reforms targeting wealthier individuals and corporations instead.
Additionally, the group called for improved job creation efforts, clarity on the long-term future of the SRD grant, and the introduction of basic income support.
