New social grant for South Africa is coming
The Department of Social Development has confirmed the extension of the Social Relief of Distress (SRD) grant, keeping the monthly payout at R370 until March 2027 until its new successor is finalised.
This follows President Cyril Ramaphosa’s announcement during his State of the Nation Address (SONA) that the grant would continue indefinitely.
The SRD grant was introduced as a temporary relief measure during the COVID-19 pandemic to assist those who lost jobs or were otherwise negatively impacted by the pandemic and lockdowns.
It started as a R350 grant, but was later increased to R370.
It was always intended to come to an end; however, over 8 million South Africans have come to depend on the relief, and it has thus been extended on an annual basis.
During the 2025 budget process, the National Treasury budgeted for the grant to run through to March 2026 and pencilled in funding to extend it to 2027.
According to the DSD, the SRD grant was expected to end on 31 March 2026, but it will now continue for another 12 months in its current form.
“Following the official pronouncement of the extension, the Minister of Social Development is supposed to operationalise the extension through publication of the Amendments to the COVID-19 SRD Regulations in the Government Gazette before 31 March 2026,” the department said.
“The aim of these amendments is to regularise the 12-month extension of the provision from 1 April 2026 to 31 March 2027.”
“This means the monthly amount of the R370 of the provision will be paid to successful applicants from the period 1 April 2026 until March 2027.”
The grant costs the country about R40 billion a year to maintain, but this has been deemed unsustainable without alternative sources of revenue to fund it.
New grant incoming
On top of announcing the extension of the grant, Ramaphosa also announced that it would be completely reworked into a new grant this year.
“Since it was introduced during COVID-19, the Social Relief of Distress Grant has kept millions of South Africans out of food poverty,” the president said.
“As a transformative instrument to improve the lives of the poorest and most vulnerable people, this grant will be continued.”
“This year, we will redesign the grant to more effectively support livelihoods, skills development, work opportunities and productive activity.”
The National Treasury previously noted that it was exploring ways to transform the SRD grant from a straight payout to better integrate it with employment opportunities.
This would make it something akin to a job-seeker allowance, where it would be a temporary support measure for those looking for employment.
“Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,” the Treasury said.
While the ANC has been promising for years to expand social grants in the country to include a “basic income grant” (BIG), the economic realities of funding such a budget item have scaled these ambitions back.
Talk of a BIG has died down in recent years, replaced by the transformation of the SRD grant into something more permanent, more targeted, and more financially sustainable.
More details about the future of the grant are expected at the tabling of the 2026 budget, which will take place on 25 February 2025.
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