The National Treasury is addressing concerns about potential double-dipping, where individuals might be receiving both government support and the Social Relief of Distress (SRD) grant. Steps will be taken to prevent this.
The SRD grant, initially introduced in 2020 to assist unemployed individuals during the pandemic, has become a vital support mechanism for millions of individuals living in South Africa. Currently, the South African Social Security Agency (Sassa) pays the grant to more than 7 million individuals monthly.
Finance Minister Enoch Godongwana extended the SRD Grant's implementation until March 2025, allocating R34 billion for continued payments. This amount is notably less than the previous extension cost of R44 billion.
Deputy Director-General Mampho Modise clarified the reduced allocation aims to avoid paying grants to employed individuals using multiple bank accounts.
This was just to ensure that we do not give a grant to people who are working, who have an income but they use different bank accounts to try and get additional funding.
Treasury will continue implementing strict measures to assess eligibility, considering factors like bank account balances.
If you have an amount of R670 in your bank account, then you do not qualify for the social relief of distress grant, and we also look at the people who have multiple bank accounts.
SRD grant applicants must not have multiple bank accounts, and income in their bank account should not exceed R624 for eligibility. The government is concerned about individuals exploiting multiple bank accounts to bypass the income threshold for the SRD grant.
In terms of the SRD grant, income refers to the money a person has in their bank account. If the funds in their bank account exceed R624, their application for the SRD grant will be rejected.
To qualify for the SRD grant, applicants must be 18-59 years old, South African citizens or permanent residents, unemployed, and not receiving support from the government or affiliated institutions.
It has also been revealed that SRD grant recipients may need to reapply every three months to verify employment status. This as once a person earns an income beyond the income threshold for the grant, they would lose their eligibility status for the SRD Grant.