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What The SASSA R350 Grant Is Being Spent On

Speakers at the Launch of the special report on the Covid-19 SASSA R350 SRD grant

The Department of Social Development launched a special report on the Social Relief of Distress (SRD) grant. In the report, it is revealed where most of the money is spent. 

Dr Wiseman Magasela, Executive Director of Clermont Analytics revealed that 93% of grant money was used to purchase food. Food was the most bought item, followed by the purchasing of electricity which accounted for 20%. 

Statistics South Africa estimates that it costs approximately R634 per month for a person to buy the minimum amount of food needed to survive daily. This disparity between the cost to feed an adult and the SRD grant amount shows that while the grant is providing critical relief to citizens, more needs to be done. 

The report also found that 70% of respondents who applied for the SASSA R350 grant live in households that have a minimum of 4 members. It was also determined that 70% of people who applied for the R350 SRD grant were under the age of 35. 

Dr Magasela explains that South Africa’s very high unemployment in the under-35 age group, which is around 74%, is an indication that supports the findings that 70% of people who are without jobs applied for the grant. 

The report also revealed that the main reason why people could not apply for the grant was due to not having an Identification Document or a Cellphone. This information is crucial to SASSA in the grant verification process.

Here are the steps SASSA takes to determine whether or not you qualify for the R350 SRD grant:

Step 1 - The information you provide to SASSA is validated by the Department of Home Affairs. This information includes your ID number, Name and Surname.

Step 2 - Your ID number is then matched against various databases. These databases include the South African Revenue Services (SARS), Unemployment Insurance Fund (UIF) and National Student Financial Aid Scheme (NSFAS)

Step 4 - Your ID number and mobile number is then put through a Fraud Risk Scoring process.

Step 5 - Once these steps are completed, SASSA will decide if your SRD grant application is successful or unsuccessful. 

Clermont Analytics conducted qualitative in-depth interviews with respondents who applied for the SASSA R350 SRD grant to gather their research. Approximately 14 million people applied for the SRD grant.

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