Covid-19 SRD grants will still be paid this month despite Sassa’s court battle

The Department of Social Development (DSD) has reassured those who get the Covid-19 Social Relief of Distress Grant (SRD) that they will still receive their money this month despite it appealing a North Gauteng High Court judgment on the grant.

Last month’s decision could increase the amount of the R370 SRD grant and the number of people who will receive it.

The ruling was in favour of the Institute for Economic Justice (IEJ) and #PayTheGrants (#PTG), who took the Minister of Social Development, the South African Social Security Agency (Sassa), and the Minister of Finance to court over regulations pertaining to the grant.

SRD grant payment continues

This week, The department said it would appeal the ruling but was “committed to serving vulnerable South Africans with integrity”.

“SASSA will continue to administer the SRD [grant] as per existing guidelines to ensure uninterrupted service delivery,” it added.

SRD grant regulations ‘unconstitutional and invalid’

The applicants contested the constitutionality of certain of the “Regulations Relating to Covid-19 Social Relief of Distress”, introduced on 29 May 2023 by the Minister of Social Development.

They contended that various regulations and procedures on accessing the grant have resulted in the irrational, arbitrary, and unfair exclusion of those who are legally entitled to receive it.

The applicants claimed that the Department of Social Development has admitted that these obstacles were introduced to stay within the National Treasury’s allocated budget rather than to ensure “fair access”.

Judge Leonard Twala ruled that aspects of the SRD grant regulations are unconstitutional and invalid.

He ordered the government to take steps to increase the grant’s value, ensure that no eligible applicants are excluded, and address systemic failures in its administration.

ALSO READ: ‘Unfair exclusions’ of SRD grant to be tested in court

SRD grant not a temporary measure

One of the most critical findings is the high court’s rejection of the government’s submission that the SRD grant is a temporary measure.

The respondents argued that the grant, initially introduced under the Disaster Management Act in 2020 to assist those financially impacted by Covid-19, was not a permanent form of social assistance.

However, Judge Twala held that the SRD grant now falls within the Social Assistance Act (SAA) and has the same legal standing as other social grants.

He said South Africa faces an unemployment rate of about 30%, making the SRD grant a critical safety net rather than a temporary intervention. The court reasoned that given the high levels of poverty and joblessness, the grant serves a structural function similar to other permanent social grants under the SAA.

Digital hurdle

Twala also ruled that Regulation 3(2), which requires online-only applications, is unconstitutional and invalid because it effectively excludes many poor and vulnerable individuals who lack access to smartphones, computers, and the internet.

He ordered the regulations to be amended to allow in-person applications at Sassa offices.

ALSO READ: Sassa and FNB step in to assist social grant recipients with Ithala accounts, but there may be SRD delays

Appeal

The judgment was hailed as a landmark ruling, paving the way for up to 18.3 million people to access the R370 SRD grant.

On Monday, the Department of Social Development announced its intention to appeal the judgment. 

“After careful consideration and having sought legal counsel, the department has decided to pursue an appeal against the orders issued,” said the department’s acting Deputy Director General, Lumka Oliphant. 

She added that the department respects the judicial process but disagrees with the decision and its implications for the administration of the SRD grant.

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