{"id":825031,"date":"2025-05-21T15:22:54","date_gmt":"2025-05-21T13:22:54","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=825031"},"modified":"2025-05-21T15:37:15","modified_gmt":"2025-05-21T13:37:15","slug":"big-social-grant-change-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/budget-speech\/825031\/big-social-grant-change-in-south-africa\/","title":{"rendered":"Big social grant change in South Africa"},"content":{"rendered":"\n

Finance Minister Enoch Godongwana has announced a new system for the Social Relief of Distress (SRD) grant, which will focus on employment opportunities.<\/p>\n\n\n\n

Following two failed Budgets, Godongwana delivered Budget 3.0 today, with support from members across the Government of National Unity (GNU).<\/p>\n\n\n\n

As part of the Budget, the Minister announced significant changes to the SRD Grant, which has been extended yet again to the end of March 2026.<\/p>\n\n\n\n

The grant was created during the COVID-19 pandemic to lessen the economic fallout of the health crisis. It was initially worth R350 per month and later increased to R370.<\/p>\n\n\n\n

Despite being a temporary measure, the grant has been extended several times and is unlikely to be removed. It has regularly been cited as the potential starting point for a Basic Income Grant.<\/p>\n\n\n\n

Although no permanent income grant was mentioned, the minister said that the government is considering several ways to better integrate the SRD grant with employment opportunities.<\/p>\n\n\n\n

“This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes,” said the Minister<\/p>\n\n\n\n

“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.”<\/p>\n\n\n\n

Looking at the other social grants in the country, Godongwana said that the R1.6 billion increase social grants for 2025\/26 in the previous budget will remain unchanged.<\/p>\n\n\n\n

However, it had planned to increase monthly stipends paid to pensioners and other vulnerable people by more than the inflation rate over three years.<\/p>\n\n\n\n

In the review, the outer year increases have been scrapped, saving the government R6.6 billion over three years.<\/p>\n\n\n\n

Social grants are allocated R284.8 billion for 2025\/26, allowing the government to increase grants by the following:<\/p>\n\n\n\n

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