South Africa

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

The High Court in Pretoria is set to hear a critical case on whether government’s handling of the Social Relief of Distress (SRD) grant aligns with constitutional mandates on social assistance.

The Institute for Economic Justice (IEJ) and advocacy group #PayTheGrants are contesting the eligibility requirements and stagnant value of the SRD grant, which they argue exclude millions from accessing necessary financial assistance.

‘Problematic regulations’ of SRD grants

A two-day hearing this week will hear arguments that some of the current framework regulations and procedures violate the constitutional right to social welfare for vulnerable people.

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Neil Coleman, senior policy specialist at the IEJ, said: “We gathered information and made submissions to the government, highlighting problematic regulations we consider unlawful and unconstitutional.

“Our focus has always extended beyond Covid relief and social assistance, addressing broader issues of poverty, hunger and unemployment.

“Our case asserts that around half of the people who should be receiving it are excluded due to the restrictive budget decisions. Our primary argument is that you cannot create a policy to address extreme poverty and then restrict access to those who qualify by refusing to resource our policy.”

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ALSO READ: Sassa’s SRD Grant system: Students expose alarming rate of fraudulent applications

The court challenge highlights several administrative issues with the grant, including regulations that unfairly exclude millions of applicants and problematic aspects of the grant.

“The exclusion has a significant impact on the broader economy. For instance, anyone with an income below R624 qualifies, yet even small, one-off transactions like a family member giving financial help can disqualify applicants,” he said.

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“Excessively low means tests and overly broad definitions of ‘income’ unfairly exclude millions, given that the poverty line is now over R1 500.

“The grant’s current value is far below the food poverty line, and our argument is that it should at least meet this threshold to combat hunger and poverty. Though we aren’t asking the court to mandate a basic income grant, we are asking it to address the unfair exclusions under the current SRD framework.”

Coleman added the regulations discriminate against SRD applicants, who face lower income thresholds and strict online application requirements, unlike recipients of other grants like child support and old-age pensions who can apply in person, and have a far higher means test.

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More than 17 million applied for the SRD grant in September

Earlier this month, Sassa reported that more than 17 million people applied for the SRD grant last month. IEJ noted that the figures aligned with previous peaks, although the grant remained capped at 8.5 million beneficiaries. The recent figures mark an increase of over three million people since September 2021, which recorded 13.8 million applications.

ALSO READ: Sassa refutes claims of receiving 17 million SRD grant applications in one month

Nathan Taylor, coordinator of Pay The Grants, emphasised that the eligibility criteria and grant amount failed to meet the needs of South Africa’s most vulnerable populations.

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“While Treasury might view this as a way to balance budgets, it disregards the fundamental role the grant plays in people’s dignity and livelihoods,” he said.

“The SRD is the minimum needed to keep people from starving; it doesn’t cover essentials like rent, or any other costs. The grant amount isn’t even close to what’s needed, according to current government regulations, you essentially need to be starving to qualify – and stay in that dire state to continue receiving it.

“We believe that social protection should be more than mere survival; it should offer a pathway to a better life.”

NOW READ: Sassa grants cost taxpayers R250 billion per year

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By Thando Nondywana