The announcement of an increase in the Social Relief of Distress (SRD) grant from R350 to R370 in April 2024 brings some relief to millions of grant beneficiaries. However, stakeholders argue that for the grant to effectively address hunger and poverty, more substantial improvements are imperative.
Proposal To Improve The SRD Grant
The Institute for Economic Justice (IEJ), in collaboration with PayTheGrants, has been actively engaged in advocating for improvements to the SRD grant. While the recent increase is acknowledged, it falls short of the necessary measures needed to make a significant impact.
Before the increase, the IEJ highlighted the stagnation of the grant's value since its inception in 2020, emphasising the erosion of its purchasing power due to inflation. This static value not only contradicts legal obligations but also lacks rationality, as it fails to consider cost-of-living adjustments or poverty benchmarks.
Phase 1
- The IEJ's initial proposal advocates for a substantial increase of R180, elevating the SRD grant to R530 monthly.
- This adjustment aims to counter inflationary effects from 2020 and to restore the grant's real value, aligning it more closely with the Child Support Grant (CSG).
Phase 2
- In the subsequent phase, scheduled for the 2024/2025 financial year, the IEJ proposes benchmarking both the SRD Grant and CSG to the Food Poverty Line (FPL), currently set at R760.
- Despite acknowledging the considerable investment required, the IEJ underscores the pivotal role such measures play in addressing poverty and hunger and improving socio-economic conditions.
The IEJ warns against the repercussions of maintaining the status quo, stressing that the cost of inaction extends beyond financial considerations. It highlights the adverse effects on citizens' well-being, governmental resources, and societal stability.
In conclusion, while the recent increase in the SRD grant is a step forward, it is evident that further adjustments are necessary to meet the pressing needs of vulnerable populations.
The proposals set forth by stakeholders offer a comprehensive framework for enhancing the efficacy of social assistance programmes, ultimately striving towards a more equitable and sustainable society.
