Finance Minister Enoch Godongwana has confirmed that the Social Relief of Distress (SRD) grant will continue until 31 March 2026, marking a significant commitment by the South African government to support the country’s most financially vulnerable. This was his third Budget Speech and second delivered address, and it comes amid economic uncertainty and pressure on public finances.
To sustain the R370 monthly grant, the government will allocate R35.2 billion, which includes the cost of administration.
SRD Grant Secured for Another Year
Initially introduced in 2020 as a temporary measure to cushion the blow of the COVID-19 pandemic, the SRD grant has since become a vital support system for more than 8 million unemployed South Africans aged between 18 and 59. Its continuation through to 2026 offers temporary stability for these beneficiaries.
However, the future of the grant was thrown into question after the proposed VAT hike was scrapped, leading to speculation about whether the government could still afford to extend it.
Civil Society Reacts – Black Sash Calls for Permanent Basic Income
Civil society organisation Black Sash has welcomed the extension but reiterated its call for the SRD grant to be transformed into a permanent Basic Income Support programme.
“The SRD grant has been a lifeline for many. The extension is encouraging, but we need a clear political and fiscal commitment to permanent support for those aged 18 to 59 with little to no income,” the group stated.
Black Sash and other advocacy groups argue that long-term social protection is essential for reducing poverty and inequality, especially as unemployment remains persistently high.
Government Explores Alternatives – Job-Seeker Grant in the Pipeline?
Minister Godongwana revealed that the government is actively reviewing options to enhance the design of the SRD grant by aligning it with labour market initiatives.
This includes:
- A potential job-seeker allowance
- Integration with Active Labour Market Programmes
- New mechanisms to link grant recipients to employment pathways
“The objective is to provide immediate relief while also creating pathways to employment,” said Godongwana.
These proposed reforms aim to shift beneficiaries from dependency to opportunity, while maintaining a safety net for those unable to secure jobs.
What’s Next for the SRD Grant?
With just under a year remaining before the current extension expires, the future of the SRD grant beyond March 2026 will depend on:
- Political will
- Economic performance and fiscal space
- Outcome of social compact negotiations
- Advocacy by civil society and public pressure