President Cyril Ramaphosa announced that the government will continue paying the Social Relief of Distress (SRD) grant. This was revealed during the 2023 State of Nation Address.
The SRD grant, also referred to as the R350 grant, is paid to millions of unemployed individuals monthly. The president explained that the continuation of the SRD grant forms part of the government's efforts to mitigate the rising cost of living.
“In support of this work and to counter the rising cost of living, we will continue the Social Relief of Distress Grant, which currently reaches around 7.8 million people,” said Ramaphosa.
While the government's intention to continue its implementation of the SRD grant was well received by many sectors of society, many believe that the government needs to do more to protect current and future beneficiaries of the SRD grant.
The National Education, Health and Allied Workers’ Union (NEHAWU) believes the government must introduce a Basic Income grant. The union argues that government should transition to a Basic Income Grant instead of the current fragment and costly grants system.
The union said, “We demand the immediate transition to the Basic Income Grant instead of the current fragment and administratively costly grants system including the SRD Grant.”
They add that the implementation of a Basic Income Grant and the social support it can provide extends beyond the current social protection provided to vulnerable South Africans
NEHAWU said, “We strongly believe that the transition to universal basic income grant will provide our people with dignified livelihoods and social protection.”
The Department of Social Development (DSD) commissioned research regarding the impact a Basic Income Grant could have. The research also evaluated several funding models that can be used to fund a Basic Income Grant.
Plans regarding the continuing payment of the SRD grant will be revealed by Finance Minister Enoch Godongwana later this month during his 2023 Budget speech.
