Back to drawing board for 2026 revised SASSA SRD grant
As such, a draft policy for the revised SASSA SRD grant was initiated with the committee for Social Protection, Community and Human Development back in November 2024. However, the committee sent it back to the DSD on Wednesday this week, citing 'affordability and economic opportunities for beneficiaries.' The none-permanent COVID-19 Social Relief of Distress grant has been extended every year since 2020. Image: File
Before the new-look stipend is approved, it must survive various engagements. Like with the Office of the Presidency, National Treasury and Department of Employment and Labour. The South African Social Security Agency believes this will be concluded within a few months. From there a draft will be published for public comment.
Policymakers from the DSD were told to 'better integrate pathways from income support to employment.' Currently, the grant pays out R370 each month to roughly 9-million beneficiaries living below the poverty line. However, the committee wants to see it become better 'aligned with broader economic objectives,' like jobs … South Africa's unemployment rate has only been increasing in the last decade, forcing many to exist in the informal sector. Image: File
Essentially, the 2026 Basic Income Grant will be for those without jobs, but not to the point of creating long-term dependency on the grant. Therefore, the DSD and SASSA have to improve their data systems and align government programmes to make it work efficiently. Government is concerned that if and when they make the grant permanent, it must be budgeted for every year to remain viable (unlike the current R370 SRD which isn't permanent).
While the department sets to work 'tightening' the revised SASSA SRD grant, it has requested that the National Treasury extend SRD for two more years. However, the Treasury has only approved the continuation of the current SRD grant until March 2026. There's simply not enough taxpayer money to ensure everyone who applies for a SASSA grant will be approved for one. Image: File
In response to yet another delay to the revised SASSA SRD grant, many MPs were scathing of the DSD's work. The EFF's Noluvuyo Tafeni noted the policy has been in development for over two decades and was still not ready. Likewise, the DA's Alexandra Abrahams questioned whether the revised SASSA SRD grant policy would ever see the light of day. Finally, the MK's Nhlanhla Gcwabaza argued that SASSA should work to help people exit the grant system, not make them dependent on it …
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
4 hours ago
- TimesLIVE
July car sales hit six-year peak
Despite the looming threat of tariffs, South Africa's domestic new-vehicle market continued full throttle in July, delivering the highest monthly sales since October 2019. In the tenth straight month of increased volumes, 51,383 units were delivered last month, up 15.6% from July 2024, which industry body Naamsa attributed to improving consumer confidence, favourable credit conditions and a steady recovery in disposable incomes. It firmly re-established pre-Covid-19 levels and momentum in the market's recovery. Passenger cars were the best performing segment last month at 36,248 units, the highest since January 2017 and a gain of 20.1% compared to July 2024. Car rental sales accounted for 14% of last month's figure. Sales of new light commercial vehicles, bakkies and minibuses at 12,356 units were 6.9% higher than July 2024. Medium trucks sold 703 units (+13.9%) while heavy trucks and buses dropped 1.3% to 2,076 units. The much-welcomed decision by the Reserve Bank in July to further reduce the repo rate by 25 basis points to 7% — its third cut this year — will further inject much-needed stimulus into the economy, said Naamsa CEO Mikel Mabasa. 'Encouragingly, household credit extension has continued to improve, while consumer sentiment is rebounding — especially among middle- and upper-income groups. The implementation of pension reforms has also unlocked additional liquidity for big-ticket purchases such as vehicles. This positive trend is further reinforced by improved logistics performance, a more stable electricity supply and a sustained demand for high-spec, cost-effective vehicles across market segments,' he said. Year-to-date sales of 330,274 new vehicles this year were 13.9% up on the first seven months of 2024. 'There remains a direct correlation between the rate-cutting cycle and the upturn in new vehicle sales,' said Lebo Gaoaketse, head of marketing and communication at WesBank. 'The market should continue to expect growth if interest rates remain lower.' 'The cumulative interest rate cut of 1.25% since the cycle started is saving a typical new car buyer about R257 per month. The sweet spot of the new vehicle market is a price point of R370,000 according to WesBank's book. More critically, the interest saving over the loan period could be over R18,500, which shows the impact lower rates have on stimulating the market and aiding affordability.' Vehicle exports have shown resilience in the face of the 25% automotive tariffs imposed by the US in April. Export volumes last month decreased 1.9% to 35,379 units compared to July 2024, but year-to-date exports were still 2.5% ahead of the same period in 2024. However, the 30% tariffs imposed on South Africa from this month are expected to cause economic headwinds for some local motor manufacturers. 'Despite global uncertainty and the looming threat of tariffs, South Africa's vehicle market continues to show remarkable resilience,' said Brandon Cohen, chair of the National Automobile Dealers' Association (NADA). A key contributor to the robust passenger market is the growing influence of Chinese and Asian vehicle brands, he said. Four Chinese importers are now among the top 15 best-sellers, including newer entrants such as Omoda/Jaecoo and Jetour. 'Financial institutions have also shown confidence in these brands by offering white-labelled finance packages, further supporting their market penetration. Meanwhile, manufacturers like Kia and Mahindra continue to feature prominently in the top 10, reflecting strong demand for affordable, value-driven options, a trend that has also underpinned Suzuki's consistent success. 'The rapid rise of Chinese and Asian brands reflects a shift in buyer preferences towards affordability and value. It's a trend we expect to intensify as more brands enter the market,' said Cohen. Toyota retained its lead as South Africa's most popular brand in July. The top 15 selling brands were: 1. Toyota — 12,694 2. Suzuki — 6,257 3. Volkswagen group — 5,738 4. Hyundai — 3,161 5. Ford — 2,877 6. GWM — 2,436 7. Isuzu — 2,427 8. Chery — 2,160 9. Kia — 1,891 10. Mahindra — 1,441 11. Renault — 1,320 12. BMW group — 1,249 13. Nissan — 1,190 14. Omoda and Jaecoo- 1,069 15. Jetour — 717
Eyewitness News
5 hours ago
- Eyewitness News
US job growth weaker than expected in July as unemployment rises
WASHINGTON - US job growth missed expectations in July, government data showed Friday, while revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. The employment numbers appear to signal risks in the key labour market in the world's biggest economy, as companies grapple with President Donald Trump's sweeping tariffs. The world's biggest economy added 73,000 jobs last month, while hiring numbers were revised significantly lower for May and June, the Labour Department said. The jobless rate nudged up from 4.1% to 4.2%. Experts have warned that private sector firms appear to be in a wait-and-see mode due to heightened uncertainty over Trump's rapidly changing trade policy. With tariff levels climbing since the start of the year, both on imports from various countries and on sector-specific products such as steel, aluminum and autos, many firms have faced higher business costs -- which some are now passing along. On Friday, the Department of Labour said hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000. This was lower than job creation levels in recent years. During the pandemic, the economy lost jobs.
The South African
7 hours ago
- The South African
New police minister warns against 'shoot to kill' tactics
Newly appointed Police Minister, Professor Firoz Cachalia, has warned against the abuse of police power and the use of deadly force, stating it could lead to tragic incidents like the Marikana massacre or the killing of Andries Tatane during a service delivery protest. Speaking shortly after his swearing-in at the Union Buildings in Pretoria on Friday, Cachalia rejected any 'shoot to kill' approach within the South African Police Service (SAPS). Cachalia, a constitutional law expert and former chair of the National Anti-Corruption Council, said he intends to serve with integrity and independence. 'I'm not driven by ambition or political ambition. I've been given a task, and I'm going to tackle that task without fear or favour, subject, of course, to the President's guidance as a member of Cabinet.' Cachalia faced political pressure and ongoing allegations of corruption within the SAPS but maintained a calm, resolute stance, saying external noise would not distract him. 'I understand the moment the country is in and the awesome weight of the responsibility I carry, along with others in government,' he added. Cachalia said a key part of his agenda would be addressing police conduct and reforming accountability systems. He intends to meet National Police Commissioner General Fannie Masemola on Thursday to discuss operational matters and existing task teams. 'It wouldn't be appropriate to speak before that discussion,' he said. As the outgoing chairperson of the National Anti-Corruption Council, whose term ends this month, Cachalia pledged to advance the council's recommendations in his new role. 'I'm now in a better position than I was as chairperson to take those recommendations forward, and I certainly will,' he said. He plans to bring the council and SAPS leadership together to align on reforms, particularly focusing on whistleblower protection and internal accountability mechanisms. Cachalia also plans to work closely with Justice Minister Ronald Lamola, stating that the fight against corruption must be a joint effort. 'The recommendations impact both of our portfolios,' he said. Cachalia addressed speculation about his status and confirmed, 'Today I was appointed minister, not acting.' Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
