Government

Ramaphosa outlines new social grant for South Africa

Staff Writer

 ·19 Mar 2026

President Cyril Ramaphosa has confirmed that a new Basic Income Support (BIS) grant—an overhaul of the R370 Social Relief of Distress (SRD) grant—will be a jobseeker’s grant.

Delivering the keynote address at the News24 On the Record Summit on Thursday (19 March), the president gave an updated and truncated overview of the country, a month after his State of the Nation Address.

While the speech touched on many of the same aspects as the 2026 SONA, the president noted significant shifts in global pressures that South Africa now faces.

This includes the war in the Middle East and the heavy toll it will exact on all economies, but especially those like South Africa.

The address also provided key updates on topics covered by the SONA, including South Africa generating a primary budget surplus for three consecutive years, the Youth Employment Service providing work experience opportunities to more than 220,000 young people, and progress on the new BIS.

During his SONA, Ramaphosa noted that the R370 SRD grant would be extended for another year, but added that it would be completely redesigned in 2026 and linked to various criteria.

Following Ramaphosa’s address, the Department of Social Development (DSD) confirmed the extension of the grant to March 2027, and the National Treasury subsequently allocated funds to the grant in the 2026 Budget.

Regarding the new grant that is coming, Ramaphosa has now confirmed that it will be a jobseeker’s grant.

“By redesigning the Social Relief of Distress Grant, we will ensure that those receiving the grant have access to a wide range of support to search for work and to sustain a livelihood,” he said.

“We must continue to strengthen our social protection system to reach all unemployed South Africans with a basic level of support.”

Earlier in March, the DSD announced that consultations with the National Treasury would begin this month to find a way to support the new grant.

The department confirmed that the grant was being redesigned as a Basic Income Support (BIS) grant, with the SRD grant serving as the base.

It said it was currently testing macroeconomic models to make it a sustainable, permanent support structure.

The DSD said this will likely align with linking beneficiaries aged 18 to 59 with employment, training, and enterprise opportunities.

“Evidence suggests that when beneficiaries are linked to economic opportunities, they are better able to leverage social assistance to improve their livelihoods,” the department said.

One of the key blockages for the new grant is financing. The department said the re-costing of the policy has been completed and incorporated into the draft policy.

Consultation with the National Treasury on funding the new BIS is scheduled for March 2026, the DSD said.

With the assistance of the Presidency, the department has reviewed the draft policy on the BIS, and the intention is to finalise consultation before the end of the month.