Big changes on the table for South Africa’s Social Relief of Distress (SRD) grant
The National Treasury is considering major changes for South Africa’s Social Relief of Distress (SRD) grant, which includes tying support to employment and skills programmes.
However, some stakeholders warn that these changes could cause more harm than good at a time when unemployment remains extremely high.
The SRD grant, currently set at R370 a month, has become a lifeline to the 8 million recipients who rely on it every month in South Africa.
However, while Treasury has confirmed that the grant is funded until March 2027, there are no clear signs of whether it will continue beyond that.
In an interview with 702, Independent Social Grant Activist, Elizabeth Raiters, said that there are now concerns following the plans being considered for the grant beyond 2027.
She noted that last year, Finance Minister Enoch Godongwana indicated that government departments are discussing linking support for working-age adults to skills development and employment programmes.
While the idea is aimed at improving long-term outcomes, Raiters said she is deeply worried about the real-world consequences.
According to Raiters, government initiatives of this kind usually focus on people between the ages of 18 and 35. “So what happens to anyone who’s over the age of 35? They’ll be lost,” she warned.
Raiters said many people could end up with no income at all if the SRD grant is tied to programmes that they either do not qualify for or cannot access.
“They’ll sit with no grant,” she said, adding that she cannot understand why the minister would take such an important lifeline away, knowing that the unemployment rate is so high in South Africa.
She stressed that for millions of people, the SRD grant is not a luxury but a basic means of survival.
“We have the ordinary person on the street who depends on this grant every month. It is little, but it is a lifeline, and I really don’t think this programme will be working,” Raiters said.
Finding a long-term funding mechanism is a tough task
Treasury has allocated R35.2 billion to the SRD grant for the 2025/26 budget year, and concerns have been raised about whether this level of spending is sustainable.
However, Raiters argued that the government has other options. “There are plenty of ways that a minister can actually recover this money,” she said.
She believes higher taxes on wealthy South Africans should be part of the solution. “I’ve been saying he can tax the rich because he’s not taxing the rich enough,” Raiters said.
Raiters also highlighted the broader economic role the grant plays. She said the SRD grant not only benefits recipients but also supports local businesses.
“Definitely, it is boosting the economy, because as you know, the unemployment rate is very, very high,” she said.
According to Raiters, beneficiaries spend the money at retailers on basic food items, helping to keep money circulating.
“If you take the SRD away, that money will actually impact the economy a lot,” she warned.
While she acknowledged that the R370 amount is extremely limited, Raiters said this is precisely why calls to convert the SRD into a basic income grant should be taken seriously.
“Right now, the R370 is just not enough,” she said, pointing out that food prices have continued to rise.
“Every month, the basket is getting less and less and less that people can actually buy.” She argued that a basic income grant would allow people to meet their most basic needs.
“A basic income grant is very important for these beneficiaries to actually just get the necessities and the amount of food that they actually need in a month,” she said.
Responding to arguments that the government should rather focus on economic reform and job creation, Raiters was blunt.
“The government had 31 years to create jobs. If they couldn’t create jobs for 31 years, what is going to make the difference now?” she said.
She said unemployment has continued to worsen year after year, and added that she does not believe the government will be able to absorb everyone into employment.
Civil society groups have echoed these concerns, warning that tying the SRD grant to job-seeking or skills conditions could exclude many beneficiaries and deepen poverty.
Treasury has acknowledged these concerns and said any policy changes would aim to promote inclusion rather than exclusion.
In response to the proposal for a wealth tax, Godongwana has repeatedly rejected the idea of such a tax.
Treasury warned that if just 10% of high-income earners emigrated in response to such a tax, South Africa could lose up to R49 billion a year in personal income tax alone.
This amount also excludes the other taxes these individuals pay and the broader economic impact of losing their investment and spending power.
This would result in even less for those who need social assistance from the government fiscus, because there would be less money to spend on programmes like a basic income grant.
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