Budget 2025: SRD grant extended and Sassa grant increases

Finance Minister Enoch Godongwana presented his 2025/2026 Budget on Wednesday, after a delay last month due to disagreements within Cabinet over a proposed 2% increase in value-added tax (VAT).

In the run-up to his Budget Speech, the minister lay the blame for his proposed VAT hike at the door of the R370 Social Relief of Distress (SRD) grant.

The grant, introduced during the Covid-19 lockdown and intended as a short-term solution, has been extended multiple times.

“If you allowed me to cut the SRD, I wouldn’t increase anything. I’m faced with increased expenditures which are not in the budget,” Godongwana told Sunday Times.

Budget Speech: Finance minister extends SRD grant

On Wednesday afternoon, the under-fire finance minister threw SRD grant beneficiaries another lifeline by extending the grant in its current form by a year until the end of March 2026.

He allocated R35.2 billion for this purpose.

Sassa grant increases

Godongwana allocated allocated R284.7 billion to permanent social grants in 2025/26.

This allows for the following increases effective from April 2025:

• The Old Age and Disability grants by R130 to R2 315;
• The Child Support Grant by R30 to R560 per month; and
• The foster care grant by R70.
  

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