Big social grant change in South Africa

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

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

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.

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.

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.

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.

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

“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.”

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.

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

In the review, the outer year increases have been scrapped, saving the government R6.6 billion over three years.

Social grants are allocated R284.8 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 will also be extended by a year to end March 2026, with R35.2 billion allocated to maintain the current R370 per month per beneficiary, including administration costs.