South Africa’s most critical social safety net faces an uncertain future as the government announces the discontinuation of the R370 Social Relief of Distress (SRD) grant in its current form after March 2026. This development has sent shockwaves through vulnerable communities already grappling with unemployment rates exceeding 32% and widespread poverty affecting over half the population.
The Current Crisis
Finance Minister Enoch Godongwana says the R370-a-month Social Relief of Distress grant will be extended to the end of March 2026. But it is expected to be discontinued in that form after that. This announcement, delivered during the budget speech in May 2025, has created anxiety among the estimated 19 million South Africans who depend on this lifeline.
The timing couldn’t be more critical. An estimated 45% of the South African population relies on social grants or social relief of distress as a major source of income, including 13.2-million recipients of the child support grant and 4.3-million recipients of the old age grant. The impending changes represent more than policy adjustments; they threaten the very survival mechanisms of millions of families.
Immediate Impact on Beneficiaries
The uncertainty has already begun affecting recipients. Recent reports indicate Social grants go unpaid as beneficiaries struggle with SASSA’s system and Pensioners desperate for clarity after not receiving grants in June. These system failures compound the anxiety surrounding the grant’s future, leaving vulnerable populations in limbo.
New Verification Requirements: A Double-Edged Sword
The government has introduced stringent new conditions that could fundamentally alter how social grants operate. New conditions set by the National Treasury for other grants will require the South African Social Security Agency (SASSA) to verify income monthly via bank checks and checks on government databases.
Enhanced Monitoring Systems
Under the new framework, SASSA must implement comprehensive verification processes. To implement income verification, SASSA is also expected to finalise data-sharing agreements with SARS and the National Student Financial Aid Scheme (NSFAS) to assess income of applicants for grants. Additionally, Earlier this month, SASSA began biometric verification for grant beneficiaries using alternative forms of identification other than the standard 13-digit South African ID number.
Accountability Measures
The Treasury has mandated strict reporting requirements. SASSA must report quarterly on how many grants are cancelled and how much money is saved. This approach reflects the government’s determination to control costs while ensuring grants reach legitimate beneficiaries.
Constitutional Challenge and Court Victory
The grant system faced a significant legal challenge that resulted in a landmark court ruling. Regulations limiting the access to the R370-a-month Social Relief of Distress (SRD) grant are unconstitutional and invalid, the high court in Pretoria ruled on Thursday.
Key Court Findings
Judge Leonard Twala’s January 2025 ruling addressed several critical issues. Judge Twala ruled that the fixed income threshold of R624 per month was “unconstitutional and invalid”. The court ordered the government to progressively increase both the grant amount and the income threshold to account for inflation and cost of living increases.
Redefinition of Income
Perhaps most significantly, He also ordered that the definition of “income” be changed to include only regular payments from formal or informal employment, business activities, or investments, excluding once-off payments or gifts. This change could dramatically expand eligibility, as many recipients were previously excluded for receiving occasional assistance from family members.
Civil Society Concerns
Advocacy groups have raised serious concerns about the potential for mass exclusions under the new system. The Universal Basic Income Coalition has warned that the changes could lead to millions of grant beneficiaries being wrongfully excluded.
Democratic Legitimacy Questions
The Universal Basic Income Coalition has challenged the Treasury’s authority in implementing these changes. UBIC questioned Treasury’s authority to impose policy instructions on SASSA, saying: “This is undemocratic. It is not the prerogative of the National Treasury to dictate the way in which the Department of Social Development implements its own regulations.”
Economic Implications and Fiscal Pressure
The government faces mounting fiscal pressures that directly impact social spending decisions. The Department of Social Development (DSD) has been allocated R285-billion for social grants in the 2025/26 year. This includes money for increases in grants announced in April. But the allocation will drop to R260-billion in 2026/27, “due to the discontinuation of social relief of distress for the Covid-19 pandemic and a downward adjustment to fund other government priorities”.
Long-term Beneficiary Projections
The financial impact extends beyond immediate cuts. The termination of pandemic-related relief funding is expected to see a reduction in the total number of social assistance beneficiaries from an estimated 27.7-million in 2024/25 to 19.3-million in 2027/28. This represents a dramatic reduction in the social safety net at a time when unemployment remains stubbornly high.
Alternative Solutions and Future Directions
While the current SRD grant faces discontinuation, government officials have hinted at alternative approaches. The State of the Nation Address suggested that the Covid-19 SRD grant will be used as a basis for the introduction of a sustainable form of income support for unemployed people.
Universal Basic Income Considerations
There are discussions about transitioning to a Universal Basic Income Grant (UBIG) system, though details remain scarce. This approach could provide more comprehensive coverage while addressing the sustainability concerns that plague the current system.
The Human Cost
Behind the policy debates and fiscal calculations lie real human stories. For many recipients, the R370 grant represents the difference between survival and destitution. The uncertainty surrounding its future creates additional stress for families already struggling with basic necessities like food, electricity, and healthcare.
The grant’s evolution from a temporary COVID-19 relief measure to a permanent fixture of South Africa’s social protection system reflects the persistent economic challenges facing the country. Its potential discontinuation raises fundamental questions about the state’s commitment to supporting its most vulnerable citizens.
Moving Forward
As South Africa grapples with these difficult decisions, the balance between fiscal sustainability and social protection remains delicate. The government must navigate competing demands for resources while ensuring that any changes to the grant system do not push millions deeper into poverty.
The coming months will be crucial as various stakeholders work to implement the court’s orders, address system inefficiencies, and develop sustainable alternatives. The ultimate test will be whether South Africa can maintain its commitment to social protection while building a more inclusive and economically viable society.
Frequently Asked Questions
Q: When will the R370 SRD grant end? A: The grant is extended until March 2026, but will be discontinued in its current form after that date.
Q: What are the new verification requirements? A: SASSA now conducts monthly income verification through bank checks and government database cross-referencing, with quarterly reporting on cancelled grants.
Q: How did the court ruling affect the grant? A: The Pretoria High Court ruled current income thresholds unconstitutional and ordered increases to both grant amounts and income thresholds to account for inflation.
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