President Cyril Ramaphosa has doubled down on plans to make the shift to a permanent Basic Income Grant a reality in South Africa.<\/p>\n\n\n\n
Delivering the 2024 State of the Nation Address, the president said that this will be done by extending and amending the Social Relief of Distress [SRD] Grant.<\/p>\n\n\n\n
“We have seen the benefits of this grant and will extend it and improve it as the next step towards income support for the unemployed,” said Ramaphosa.<\/p>\n\n\n\n
The R350 SRD grant was introduced during the Covid-19 pandemic which Ramaphosa said currently supports 9 million unemployed people monthly. However, the Basic Income Grant is said to increase and expand on this.<\/p>\n\n\n\n
The SRD is currently one of the only sources of financial support for millions of South Africans who are unable to find employment. South Africa\u2019s unemployment rate of 31.9% is one of the highest in the world. <\/p>\n\n\n\n
Ramaphosa went on to dismiss the critique that the grants have been establishing a “dependent society” – saying that it rather serves to protect the unemployed from the threat of poverty.<\/p>\n\n\n\n
However, no concrete plans or details on the grant have been presented yet. Further details are expected to emerge during the 2024 Budget Speech.<\/p>\n\n\n\n
Recently, Minister of Social Development Lindiwe Zulu said that funding models being explored for the proposed Basic Income Grant are between:<\/p>\n\n\n\n
Currently, the Department of Social Development has allocated 96.4% of its R263 billion for grants; meaning R253 billion has been allocated in the 2023\/2024 financial for direct cash transfer payments. R36 billion has been used to fund the extension of the Covid-19 SRD grant until 31 March 2024.<\/p>\n\n\n\n