Since the introduction of the Social Relief of Distress (SRD) grant during the Covid-19 pandemic, government has been providing the grant to unemployed individuals in South Africa who have no other source of income. As the grant rolls into it's fifth year, many are anxious about it's future.
More than 28 million people in South Africa receive social grants with millions being SRD grant beneficiaries. After many extensions, the SRD grant is now set to come to an end in March 2025 with many South Africans wondering what's next.
On Thursday evening, President Cyril Ramaphosa delivered the State of the Nation Address (SONA) under the theme of “A Nation That Works For All”. Ramaphosa announced the following:
The Social relief distress grant is an essential mechanism for alleviating extreme poverty. We will use this grant as a basis for the introduction of a more sustainable form of income support for unemployed people.
Although an SRD grant extension is still uncertain, this does indicate that a basic income grant is in the works. With the Budget Speech to soon be delivered by the Finance Minister, Enoch Godongwana, we will soon hear what the future of the SRD grant is.
The Minister previously said, "for the extension of the grant beyond 2025, we have made the point that it may work, we have to find some revenue source for it".
However, the affordability and sustainability of the SRD grant has been placed under the spotlight as the Department battles with budget cuts.
SRD Grant Increase
Last year, Godongwana announced that after many calls for the grant to increase, that the SRD grant will receive a 5.7% increase of R20, from R350 to R370 per month.
The proposed basic income grant will likely be linked to economic and livelihood opportunities as it aims to address the long-term needs of vulnerable populations.
