In the 2025/2026 Budget presented on March 12, Finance Minister Enoch Godongwana unveiled significant measures to bolster South Africa’s social support system.
Amid economic challenges and debates over fiscal policies, the government has prioritized the welfare of its citizens by extending the Social Relief of Distress (SRD) grant and increasing various South African Social Security Agency (SASSA) grants.
Extension of the SRD Grant
Initially introduced during the COVID-19 pandemic to provide temporary relief, the SRD grant has become a crucial lifeline for over 10 million South Africans.
Recognizing its importance, the government has extended the SRD grant in its current form by one year, now set to continue until the end of March 2026.
This extension is backed by an allocation of R35.2 billion, ensuring continued support for those in need.
SASSA Grant Increases
To further support vulnerable populations, the government has allocated R284.7 billion to permanent social grants for the 2025/26 fiscal year. This allocation facilitates the following increases, effective from April 2025:
| Grant Type | Previous Amount (R) | Increase (R) | New Amount (R) |
|---|---|---|---|
| Old Age Grant | 2,185 | 130 | 2,315 |
| Disability Grant | 2,185 | 130 | 2,315 |
| War Veterans Grant | 2,205 | 130 | 2,335 |
| Child Support Grant | 530 | 30 | 560 |
| Foster Care Grant | 1,125 | 70 | 1,195 |
| Care Dependency Grant | 2,185 | 130 | 2,315 |
| Grant-in-Aid | 530 | 30 | 560 |
These adjustments reflect the government’s commitment to addressing poverty and inequality while maintaining sustainable spending.
Economic Context and Fiscal Measures
The budget announcement followed a delay attributed to internal cabinet discussions regarding a proposed 2% increase in value-added tax (VAT).
Minister Godongwana had previously indicated that the SRD grant’s financial implications necessitated considerations for additional revenue sources, such as the VAT hike.
He emphasized that without the SRD grant’s extension, such tax increases might have been avoidable.
Future Outlook
The SRD grant’s extension serves as a foundation for developing a more sustainable form of income support for unemployed individuals.
The government plans to review active labor market programs, with findings expected by September 2025, to inform the future structure of such support mechanisms.
FAQs
What is the duration of the SRD grant extension?
The SRD grant has been extended until the end of March 2026.
When will the new SASSA grant amounts take effect?
The increased grant amounts will be effective from April 2025.
How many people benefit from the SRD grant?
The SRD grant supports over 10 million South Africans.