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.<\/p>\n\n\n\n
While the idea is aimed at improving long-term outcomes, Raiters said she is deeply worried about the real-world consequences.<\/p>\n\n\n\n
According to Raiters, government initiatives of this kind usually focus on people between the ages of 18 and 35. \u201cSo what happens to anyone who\u2019s over the age of 35? They\u2019ll be lost,\u201d she warned.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
\u201cThey\u2019ll sit with no grant,\u201d 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.<\/p>\n\n\n\n
She stressed that for millions of people, the SRD grant is not a luxury but a basic means of survival. <\/p>\n\n\n\n
\u201cWe 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\u2019t think this programme will be working,\u201d Raiters said.<\/p>\n\n\n\n
Finding a long-term funding mechanism is a tough task<\/h2>\n\n\n\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/06\/grants-1-1024x576.jpg\")
<\/a><\/figure>\n\n\n\nTreasury 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. <\/p>\n\n\n\n
However, Raiters argued that the government has other options. \u201cThere are plenty of ways that a minister can actually recover this money,\u201d she said.<\/p>\n\n\n\n
She believes higher taxes on wealthy South Africans should be part of the solution. \u201cI\u2019ve been saying he can tax the rich because he\u2019s not taxing the rich enough,\u201d Raiters said.<\/p>\n\n\n\n
Raiters also highlighted the broader economic role the grant plays. She said the SRD grant not only benefits recipients but also supports local businesses.<\/p>\n\n\n\n
\u201cDefinitely, it is boosting the economy, because as you know, the unemployment rate is very, very high,\u201d she said.<\/p>\n\n\n\n
According to Raiters, beneficiaries spend the money at retailers on basic food items, helping to keep money circulating. <\/p>\n\n\n\n
\u201cIf you take the SRD away, that money will actually impact the economy a lot,\u201d she warned.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
\u201cRight now, the R370 is just not enough,\u201d she said, pointing out that food prices have continued to rise.\u00a0<\/p>\n\n\n\n
\u201cEvery month, the basket is getting less and less and less that people can actually buy.\u201d She argued that a basic income grant would allow people to meet their most basic needs.\u00a0<\/p>\n\n\n\n
\u201cA 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,\u201d she said.<\/p>\n\n\n\n
Responding to arguments that the government should rather focus on economic reform and job creation, Raiters was blunt.\u00a0<\/p>\n\n\n\n
\u201cThe government had 31 years to create jobs. If they couldn\u2019t create jobs for 31 years, what is going to make the difference now?\u201d she said.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Treasury has acknowledged these concerns and said any policy changes would aim to promote inclusion rather than exclusion.<\/p>\n\n\n\n
In response to the proposal for a wealth tax, Godongwana has repeatedly rejected the idea of such a tax.<\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nTreasury 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. <\/p>\n\n\n\n
However, Raiters argued that the government has other options. \u201cThere are plenty of ways that a minister can actually recover this money,\u201d she said.<\/p>\n\n\n\n
She believes higher taxes on wealthy South Africans should be part of the solution. \u201cI\u2019ve been saying he can tax the rich because he\u2019s not taxing the rich enough,\u201d Raiters said.<\/p>\n\n\n\n
Raiters also highlighted the broader economic role the grant plays. She said the SRD grant not only benefits recipients but also supports local businesses.<\/p>\n\n\n\n
\u201cDefinitely, it is boosting the economy, because as you know, the unemployment rate is very, very high,\u201d she said.<\/p>\n\n\n\n
According to Raiters, beneficiaries spend the money at retailers on basic food items, helping to keep money circulating. <\/p>\n\n\n\n
\u201cIf you take the SRD away, that money will actually impact the economy a lot,\u201d she warned.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
\u201cRight now, the R370 is just not enough,\u201d she said, pointing out that food prices have continued to rise.\u00a0<\/p>\n\n\n\n
\u201cEvery month, the basket is getting less and less and less that people can actually buy.\u201d She argued that a basic income grant would allow people to meet their most basic needs.\u00a0<\/p>\n\n\n\n
\u201cA 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,\u201d she said.<\/p>\n\n\n\n
Responding to arguments that the government should rather focus on economic reform and job creation, Raiters was blunt.\u00a0<\/p>\n\n\n\n
\u201cThe government had 31 years to create jobs. If they couldn\u2019t create jobs for 31 years, what is going to make the difference now?\u201d she said.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
Treasury has acknowledged these concerns and said any policy changes would aim to promote inclusion rather than exclusion.<\/p>\n\n\n\n
In response to the proposal for a wealth tax, Godongwana has repeatedly rejected the idea of such a tax.<\/p>\n\n\n\n