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Eyewitness News
3 days ago
- Business
- Eyewitness News
Treasury stands firm on unaffordability of continued extension of SRD grant
CAPE TOWN - Treasury is standing firm on the unaffordability of the continued extension of the social relief of distress (SRD) grant introduced during the COVID-19 pandemic. It has budgeted R35.2 billion to pay the grant in this financial year, while also appealing a high court ruling that it relaxes its criteria for eligibility to include thousands more people. Delivering the second version of the budget in March, Finance Minister Enoch Godongwana announced that the grant would be extended for yet another year. That is unchanged in the current version of the budget. ALSO READ: • SARS expects to see impact of increase in tax collection efforts from Q2 • Expanding list of tax-free food items won't benefit poorer households: Treasury • Treasury defends fuel levy increase However, responding to public submissions on the budget in Parliament on Friday, Treasury's head of public finance, Rendani Randela, said that Treasury has no choice but to appeal January's high court ruling that it include thousands more to receive the monthly R370 stipend. "That judgment is a fiscal risk on its own. And again, we are looking at the bigger picture here. Social assistance is not the only programme that we have, we also have other social assistance programmes outside the Department of Social Development." With 61% of the national budget going towards the social wage, Randela said Treasury believes that the existing social support net covers many of those also eligible for the SRD grant and double-dipping has to be avoided. Government is yet to take a decision on persistent calls from civil society for the SRD grant to become a basic income grant. "There's no way that we can't have a mechanism to filter out undeserving recipients of these social assistance programmes. That's why we are appealing that judgment because the way it is, if we don't challenge it, it is unaffordable."
The Citizen
22-05-2025
- Business
- The Citizen
Social grant increases remain in place in budget 3.0
Godongwana said the government is 'actively exploring various options to better integrate' the SRD grant with employment opportunities. The budget 3.0 will not affect increases to all South African Social Security Agency (Sassa) social grants. This comes as Finance Minister Enoch Godongwana delivered his third budget speech on Wednesday in Cape Town. According to the National Treasury's 2025 budget overview, the number of social grant beneficiaries, excluding those receiving the social relief of distress (SRD) grant, is projected to increase to 19.3 million people by March 2028. Grant increases The grant increases for 2025/26 are as follows: Old age grant will increase from R2185 to R2315 War veterans' grant will increase from R2205 to R2335 Disability grant will go up from R2185 to R2315 Foster care grant rises from R1180 to R1250 Care dependency grant will increase from R2185 to R2315 Child support grant will go up from R530 to R560 The grant-in-aid will increase from R530 to R560 ALSO READ: Sassa beneficiaries frustrated over delayed payments [VIDEO] 'Employment opportunities' The increase in the social grants budget of R1.6 billion in 2025/26 will remain. 'The temporary Covid-19 Social Relief of Distress grant will be extended until 31 March 2026, with R35.2 billion allocated to maintain the current R370 per month per beneficiary, including administration costs,' National Treasury said. Godongwana said the government is 'actively exploring various options to better integrate' the SRD grant with employment opportunities. 'This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes. 'Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,' the minister added. ALSO READ: Sassa offices 'reach capacity for the day'? We have no policy to turn people away, says agency The payment of the R370 grant usually takes place at the end of every month from the 25th. The agency's grant payment department, however, does not pay grants on public holidays or weekends, and with the 25th of May being a Sunday, grants will be paid earlier. Sassa spokesperson Andile Tshona confirmed to The Citizen that this month's SRD grant payment will be processed from 23 to 28 May. NOW READ: Early pay in May: Good news for Sassa SRD grant beneficiaries
