The R350 grant was supposed to come to an end next month, However, President Cyril Ramaphosa’s latest announcement has changed the end date.
Addressing the Nation on Thursday evening, the president announced that the Social Relief of Distress (SRD) grant will be extended by 12 months.
He said, “Mindful of the proven benefits of the grant, we will extend the R350 SRD Grant for one further year, to the end of March 2023”.
This means that more than 10 million people who are currently receiving the R350 grant will continue receiving crucial financial relief.
The South African Social Security Agency (Sassa) studied the impact of the R350 grant and found that more than 90% of the grant beneficiaries used the money to purchase food.
Ramaphosa did however warn that the grant will need to be financially sustainable to avoid a fiscal crisis.
He said, “As much as it has had a substantial impact, we must recognise that we face extreme fiscal constraints. A fiscal crisis would hurt the poor worst of all through the deterioration of the basic services on which they rely”.
The president added that the government will undertake broad consultations and detailed technical work to find the best permanent solution to replace the R350 grant.
“Any future support must pass the test of affordability, and must not come at the expense of basic services or at the risk of unsustainable spending” concluded Ramaphosa.
