Beneficiaries of social grants can expect a significant boost, as confirmed in the 2025 Budget Speech delivered by Finance Minister Enoch Godongwana on Wednesday, 12 March in Cape Town. One of the most notable announcements was the substantial increase to the old age grant, which will take effect from 1 April.
Godongwana revealed that the government has allocated R284.7 billion for social grants in the 2025/2026 financial year. This move is aimed at cushioning vulnerable households from the rising cost of living, which includes escalating food and fuel prices, electricity tariffs, and transport costs.
The increase in social support also comes in light of the upcoming one-percentage-point hike in VAT, split into two phases: 0.5% in 2025/2026 and another 0.5% the following year.
Confirmed Social Grant Increases for 2025:
- Old Age Grant: R130 increase to R2 315 (from 1 April)
- Disability Grant: R130 increase
- Child Support Grant: R30 increase to R560
- Foster Care Grant: R70 increase
- COVID-19 Social Relief of Distress (SRD) Grant: Remains at R370
Godongwana also confirmed that the SRD grant will be extended for another year, until March 2026, with a dedicated allocation of R32.5 billion.
He reiterated President Cyril Ramaphosa’s earlier statement during the State of the Nation Address, noting that the SRD grant will serve as the foundation for a future, sustainable income support mechanism for the unemployed.
The final form of this support will depend on the outcome of a review into active labour market policies, expected by September 2025.
What Was Initially Proposed?
According to reports, Godongwana’s original speech, scheduled for 19 February, included plans to inject an additional R23.3 billion into social grants and welfare programmes.
These measures were designed to protect nearly half of South Africa’s population, many of whom rely on these grants from the financial impact of the VAT increase.
Under the initial proposal, the old age grant was set to increase by R150 for the year, R140 in April and a further R10 in October while the child support grant would have increased by R50.
Initial Proposed Figures (Not Implemented):
- Old Age Grant: R140 increase in April, R10 in October
- Child Support Grant: Increase from R530 to R580
- Foster Care Grant: R80 increase
- COVID-19 SRD Grant: Remains at R370
While some of the earlier figures were revised in the final Budget, the government’s commitment to supporting low-income households remains strong, particularly in the face of economic pressures.
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