SRD Grant to Become Basic Income Grant

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The Social Relief of Distress (SRD) grant plays a critical role in South Africa as it remains the only government financial support available to unemployed adults. However, major changes are on the horizon, according to the African National Congress (ANC).


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ANC Secretary-General Fikile Mbalula recently announced that the SRD grant will be converted into a Basic Income Grant (BIG). He made this statement during an event held at Freedom Park in Soweto.

"The SRD grant that Ramaphosa gives to you, the R350, will be maintained, but we are going to change it so we can establish the basic income grant. This will help you till you find a job, then move so it can help others as well [translated]."

Mbalula clarified that although the value of the SRD grant will remain the same, it will be repurposed into a Basic Income Grant to assist unemployed individuals, especially the youth, as they continue their job search.

Human Rights Group Black Sash Responds

Black Sash, a leading human rights organisation, welcomed the announcement, calling it a positive step toward ensuring long-term income support for the unemployed and those living in poverty.

However, the organisation warned that the transition must not be “a repackaged or renamed SRD grant.” Instead, they emphasised the need for a universal, accessible, and adequate Basic Income Grant that truly meets basic living needs.

The current value of the SRD grant is R370—still below the food poverty line. Black Sash argues that this amount is insufficient to restore dignity or reduce poverty.

Black Sash Calls for Action

To ensure the successful implementation of the Basic Income Grant, Black Sash is urging the government to:

  • Release a clear roadmap with timelines for BIG implementation
  • Resolve administrative issues causing unfair SRD grant disqualifications
  • Increase the grant value to at least the upper-bound poverty line
  • Secure sustainable funding without cutting other social spending
  • Improve transparency and payment efficiency within Sassa and National Treasury

"We are ready to engage with policymakers to make this vision a reality – one where everyone has the means to live in dignity."

The History Behind the Basic Income Grant

The idea of a Basic Income Grant (BIG) is not new. It was first proposed at the 1998 Presidential Jobs Summit and later endorsed by the 2002 Taylor Committee, which recommended a R100 monthly grant per person.

Despite early support, the concept saw little movement until 2021, when the Department of Social Development (DSD) commissioned a study recommending a phased introduction of BIG, starting at the Lower-Bound Poverty Line.

Findings from the BIG Study

  • BIG would not threaten existing social programmes or fiscal stability
  • It should form part of a broader poverty-reduction strategy
  • Progressive taxation could help fund the grant without impacting other priorities
  • Combining BIG with wage subsidies and public employment programmes can promote inclusive growth

What’s Next for Basic Income Support (BIS)?

The DSD has confirmed that public consultations are ongoing regarding the implementation of Basic Income Support (BIS). These discussions will shape the future of income support for millions of unemployed South Africans.

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Sassa paying grants

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