The SRD SASSA grant will continue for another year, following an announcement by Finance Minister Enoch Godongwana during the 2025 Budget Review. The Covid-19 Social Relief of Distress (SRD) grant, which provides monthly payments of R370 per beneficiary, has been allocated R35.2 billion for the 2025/26 financial year.
The SRD grant, initially introduced as a temporary measure in 2020 to assist unemployed individuals during the pandemic, has since become a crucial form of income support for millions of South Africans. However, despite its repeated extensions, the long-term future of the grant remains uncertain. The National Treasury has indicated that a final decision on the grant’s permanency will depend on the outcome of a comprehensive review of social protection and employment support programmes, expected to be completed by September 2025.
Path Towards a Basic Income Grant?
While the SRD SASSA grant remains a temporary relief measure, government discussions on a permanent Basic Income Grant (BIG) are gaining traction. Treasury has provisionally earmarked R36.8 billion for the 2026/27 financial year and R38.4 billion for 2027/28, should the government decide to maintain or transform the grant into a more structured social support system. However, the biggest challenge remains funding.
“The sustainability of such a grant requires a reliable revenue source,” Godongwana noted. “Any permanent form of income support must be fully funded and aligned with the country’s economic growth strategy.”
The Treasury is exploring various funding options, including potential tax increases or reallocating existing budget expenditures, but no final decision has been made. Economic analysts warn that making the SRD grant permanent without clear funding plans could increase fiscal pressure on an already strained budget.
Legal Battle Over SRD Grant Eligibility
In addition to budget constraints, the government is facing legal challenges regarding SRD grant eligibility criteria. A recent court ruling found that the current qualification criteria—such as the low income threshold for eligibility—were too restrictive and must be reviewed. Treasury, however, is appealing the ruling, arguing that broadening the criteria without securing additional funding could destabilize the social grants system.
Civil society groups advocating for a Basic Income Grant argue that the SRD SASSA grant must be expanded to reach more people in need, emphasizing that unemployment remains high, and many South Africans still struggle to meet basic needs.
With the September 2025 review deadline approaching, the government faces growing pressure to provide clarity on the future of the SRD grant. For now, millions of beneficiaries can expect payments to continue until March 2026, but the road ahead for social protection policies remains uncertain.
