As South Africa approaches the 2025 national budget announcement, the future of the Social Relief of Distress (SRD) grant remains uncertain. A recent pre-budget brief by the Parliamentary Budget Office (PBO) has emphasized the grant’s critical role in reducing poverty while also highlighting significant legal and financial challenges surrounding its continuation.
SRD Grant: A Lifeline for Millions
Introduced in 2020 during the COVID-19 pandemic, the SRD grant has provided much-needed relief to millions of unemployed South Africans. Initially set at R350, it was increased to R370 in April 2024. However, inflation has eroded its purchasing power, leaving many still below the food poverty line.
The government allocated R33.7 billion to support approximately 9.24 million beneficiaries in 2024/25, but this falls short of the nearly 16 million people who applied for assistance. Stricter qualification criteria, including an income threshold of R624, have further limited access, raising concerns about exclusions.
Legal Challenges and Court Rulings
A landmark High Court ruling in January 2025 found several SRD grant regulations unconstitutional. Judge Leonard Twala ordered the government to increase the grant value in line with inflation and revise eligibility requirements to prevent unnecessary exclusions. The ruling follows past legal battles, including a 2020 case that secured grant access for asylum seekers and a 2022 Black Sash case that led to a revision of the income threshold.
Despite the ruling, the government has appealed the decision, prolonging uncertainty for millions who rely on the grant for survival.
A Call for Long-Term Solutions
With the SRD grant set to expire in March 2025, experts and advocacy groups are urging the government to consider sustainable alternatives. The PBO’s brief highlights proposals for a Basic Income Grant, arguing that social security should be a permanent safety net rather than a temporary intervention.
The debate is expected to intensify as Finance Minister Enoch Godongwana delivers the 2025 budget speech. With unemployment and inequality still at crisis levels, the question remains: will the government extend the SRD grant, or will millions be left without support?
