The Social Relief of Distress (SRD) grant will continue for another year, despite government currently appealing a court ruling on its eligibility criteria and long-term status.
The monthly grant, introduced nearly five years ago during the COVID-19 pandemic, will remain at R370, with R35.2 billion allocated for its extension until March 2026.
However, while the SRD grant remains unchanged, other social grants will see increases that fall short of earlier promises made by Finance Minister Enoch Godongwana.
In his revised Budget Speech, Godongwana announced adjustments to the proposed grant hikes, partly due to the decision to implement a smaller increase in Value-Added Tax (VAT) of 0.5%.
As of 1 April, the old age grant, care dependency grant, and war veterans grant will each rise by R130, bringing them to R2,315 per month. This is R20 less than initially planned in the draft February budget. The foster care grant will increase by R70 to R1,250, and the child support grant will rise to R560 — also less than the originally proposed R50 hike.
Meanwhile, the number of social grant recipients, excluding SRD beneficiaries, is expected to increase by 300,000 over the next financial year, largely due to a growing ageing population. Currently, around 19 million South Africans benefit from these grants.
To ease the impact of the VAT increase on low-income households, Godongwana suggested expanding the list of zero-rated food items.
He emphasised the strength of the country’s social assistance system, “The truth is, ours is one of the most comprehensive social safety nets among emerging economies. This reflects our commitment to addressing poverty and inequality, while keeping our spending sustainable.”
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