People protest for the R350 grants outside Sassa office in Bellville, Cape Town, in April. Picture: Gallo Images
Minister in the Presidency Khumbudzo Ntshavheni has denied claims that the government plans to discontinue the Social Relief of Distress (SRD) grant.
Reports circulated that the R370 SRD grant might not be extended beyond the current financial year, ending in March next year.
These concerns arose after Finance Minister Enoch Godongwana delivered the Medium Term Budget Policy Statement (MTBPS) last month.
In his main budget speech in February, Godongwana allocated R33.6 billion for the SRD grant.
The recent MTBPS added R2.7 billion to support the grant’s funding, bringing the total cost to the fiscus to about R36 billion a year.
During a media briefing on Wednesday about the outcomes of the recent Cabinet meetings, Ntshavheni addressed and clarified reports suggesting that the SRD grant had been canned.
“There were people who were spreading misinformation that we are ceasing the SRD grants; that is not true. The Minister of Finance was very clear about the provision for social relief distress grant,” she said.
The minister stated that the MTBPS includes provisions for the 2025/2026 financial year, covering the SRD grants.
She explained that the National Treasury, the Department of Social Development, and an inter-ministerial committee are collaborating to determine whether implementing a basic income grant was the best approach or if alternative support mechanisms should be considered.
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“As government, we accepted that the SRD grant remains an essential intervention, but that intervention may not be sustainable even if the people are saying it’s not enough.”
Ntshavheni emphasised that the government was working to identify the “best sustainable measure”.
“Until we find a replacement solution, the Minister of Finance will have to continue to make an intervention and that is the focus.
“So we should not confuse work that is being done to find more sustainable intervention with the continuation of the SRD grant. I think that’s what we need to clarify because there’s confusion,” the minister added.
The constitutionality of the SRD grant was challenged by the Institute for Economic Justice (IEJ) and advocacy group #PayTheGrants in the Gauteng High Court in Pretoria last month.
The applicants are challenging various aspects of the regulations governing the SRD grant, including the online-only application process, which excludes individuals with limited internet access.
According to the organisations, approximately eight million people are currently receiving the SRD grant.
However, a similar number who are eligible for the grant were not receiving assistance due to systematic non-payment.
READ MORE: Why only R20: SRD grant increase to R370 questioned in court
The applicants are seeking to have the SRD grant regulations declared unconstitutional as a result.
The government introduced the SRD grant in May 2020, during the peak of the Covid-19 pandemic and the national state of disaster, providing R350 per month.
Initially available only to unemployed adults, the grant was later expanded to include individuals earning below R624.
The grant amount was increased to R370 this year, and its duration has been extended until March 2025.
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