The Social Relief of Distress (SRD) grant was introduced in 2020 to assist the unemployed from the impact of the Covid-19 pandemic and subsequent lockdowns. In the early stages of the grant’s implementation, more than 10 million people qualified for the R350 grant payment.
Since the grant was introduced, it has been extended on several occasions and millions of vulnerable individuals rely on the critical relief measures. In 2022, it was announced that the grant’s implantation would be extended to March 2024.
Research conducted by Timothy Köhler and Haroon Bhorat indicates that the receipt of the SRD grant increased the probability of beneficiaries seeking employment by 25 percentage points in comparison to non-beneficiaries. This dispels the assumption that grant distribution discourages beneficiaries from seeking out employment.
South Africa’s official unemployment rate is 32.7% while the expanded definition, which includes discouraged work seekers is above 40%.
The SRD grant aims to assist unemployed individuals between the ages of 18 years old and 59 years old who currently do not qualify for any government relief in the form of a grant.
Grants by the South African Social Security Agency (Sassa) predominantly support the elderly, disabled and children while the SRD grant is specifically targeted at unemployed adults. Research says the SRD grant fills current gaps in the government's social safety.
This hole in the country’s social safety net was partially addressed through the introduction of the new Covide-19 Social Relief of Distress grant – a core component of the government’s expansion of social protection as a response to the pandemic.
The qualitative data also indicates that the implementation of the SRD grant has several positive impacts. This includes reducing food insecurity, making investments in education and health and promoting a sense of personal effectiveness.
Research also indicates that the SRD grant reduced poverty by 5.3% amongst the poorest households, and household income inequality by 1.3% - 6.3% depending on the measure.
