#PayTheGrants and the Institute for Economic Justice (IEJ), have approached the Pretoria High Court to challenge the regulations governing the Social Relief of Distress (SRD) grant. The organisations believe that the current rules unjustly exclude many eligible individuals and are unconstitutional.
The Department of Social Development (DSD), the South African Social Security Agency (Sassa), and the Ministry of Finance, listed as respondents, counter that the regulations are efficient and comply with constitutional requirements.
The SRD grant was introduced in 2020 as a temporary response to assist unemployed individuals during the Covid-19 pandemic.
One of the main criteria for the SRD grant is that beneficiaries may not have an “income” of more than R624. In terms of the SRD grant, income refers to the money a person has in their bank account.
In the court filing, #PayTheGrants and the IEJ claim that the definition of "income" used by the government is overly broad, including financial assistance from friends and family. They argue that only income from employment, business, or investments should be considered.
They also want the income threshold to be increased.
The challenge extends to the use of government databases, such as those of the South African Revenue Service (SARS), the National Student Financial Aid Scheme (NSFAS), and the Unemployment Insurance Fund (UIF), which Sassa uses to verify income.
The applicants argue that some of these databases are inaccurate and want the court to deem their use unlawful.
Additionally, the case raises concerns about the SRD grant's online-only application process, which differs from other grants that can be applied for in person. The IEJ and #PayTheGrants argue that many applicants lack internet access and are pushing for the option to apply in person.
Government's Defence
Ebenezer Nkosinathi Dladla, chief director of legal services for the DSD says the online system, stating does not require mobile data and can be completed within 20 minutes via a website or WhatsApp. He noted that the system is user-friendly and efficient, arguing that a manual process would be "regressive" and cause delays.
Sassa executive manager Brenton van Vrede also defended the grant’s verification system, stating that it prevents "double-dipping" by applicants who may already receive other government benefits.
They emphasised that using multiple databases is necessary and reasonable, given the high volume of applications processed monthly.
Treasury's Position
Former acting director-general of Treasury, Edgar Sishi, argued that the regulations do not violate constitutional rights and help provide social security to as many vulnerable citizens as the government can afford.
He warned that any court ruling against the regulations could have severe economic consequences and urged that any such decision be delayed to allow for adjustments without straining the budget.
