Here are all the big social grant changes for 2025

Finance Minister Enoch Godongwana says that the South African government is laying the groundwork for more sustainable sources of income via the Social Relief of Distress (SRD) grant.

Speaking at the postponed 2025 National Budget, Godongwana said that the government is very aware of the cost-of-living pressures facing South Africans, such as high electricity and transportation costs.

To compensate for increasing VAT by 05 percentage points in 2025, which will have a disproportionate impact on the poor, Godongwana said that the state will increase social grants above inflation.

Other efforts to shield households include expanding the basket of VAT zero-rated food items and not increasing the fuel levy for another year.

Social grants are allocated R284.7 billion for 2025/26, allowing the government to increase grants by the following:

• Old age and disability grant: +R130 per month
• War Veterans grant: +R130 per month
• Disability grant: +R130 per month
• Foster care grant: +R70 per month
• Care Dependency grant: +R130 per month
• Child Support grant: +R30 per month
• Grant-in-aid: +R30 per month

The SRD grant, in its current form, will also be extended by a year to end March 2026. R35.2 billion is allocated for the grant.

The SRD Grant was introduced in 2020 at the start of the Covid-19 pandemic. The grant currently works out to R370 per month and supports over 10 million people despite being a temporary measure.

The grant has been expanded from R350 to R370 per month and supports over 10 million people in the country.

Godongwana said that, as President Cyril Ramaphosa announced in the State of the Nation Address, the SRD will be used to create a sustainable form of income support for unemployed people.

The Minister said that the outcome of the review of active labour market programmes, which is expected to be completed by September 2025, will inform the future form and nature of the SRD.

Currently, South Africa, with a population of roughly 60 million, has nearly 28 million beneficiaries who access social grants.

“The truth is that ours is one of the most comprehensive social safety nets among emerging economies,” said Godongwana.

“This reflects our commitment to addressing poverty and inequality while keeping our spending sustainable.”

A major headache for the Finance Minister

Godongwana recently said that the proposed increase in VAT, reduced from 17% to 16%, was necessary to keep the SRD grant going.

He told the Sunday Times that a VAT hike wouldn’t be necessary if he was allowed to cut the SRD grant from the budget.

He said that he is faced with increased expenditures that are not budgeted, with the SRD grant responsible for the increase.

He said that the SRD grant was initially seen as a temporary measure. He has regularly warned the government that if the government wants it to stay on the books, a revenue source is needed to fund it.

A recent High Court order has also placed more strain on the Minister, with the court stating that the grant is too low and too restrictive.

It argued that fiscal constraints were not a sufficient excuse to exclude people who cannot support themselves. It also rejected a fixed value of the grant each year.

The ruling would see the number of grant recipients increase from roughly 10 million to 18 million, with taxpayers set to take the strain.

Treasury’s own estimates from 2024 showed that the grant could increase to R171 billion by 2032/33 if the grant becomes permanent, uptake increases, and the value approaches the food poverty line.

If the grant was pushed to reach the ‘universal’ level of 35 million people between 18 and 60 years old, it would cost R400 billion per year. Both features of the court ruling are under appeal by the government.