Activists Warn:Proposed SRD Grant Reforms Could Leave Millions Vulnerable

• Calls are growing to protect South Africa’s Social Relief of Distress (SRD) grant amid proposed changes that could tie it to employment and skills programmes
• Activists warn the new conditions may exclude millions who rely on the R370 monthly payment as a vital lifeline
• Finance Minister Enoch Godongwana previously confirmed the grant will continue until March 2027

Calls are mounting to maintain the Social Relief of Distress (SRD) grant, as activists warn that proposed changes could push millions of South Africans deeper into financial vulnerability.

Speaking to EWN, activists said the SRD grant, originally introduced as a temporary relief measure during the COVID-19 pandemic, provides essential support to those unable to work.

In 2025, Finance Minister Enoch Godongwana extended the grant until March 2027, offering a lifeline to millions struggling with unemployment and rising living costs.

Activists raise concerns over any change

Elizabeth Raiters expressed serious concern over government's plans to link SRD funding to skills development and employment programmes. She argued that introducing such conditions could exclude many of the current beneficiaries, who rely on the grant as a basic means of survival.

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“People on the street depend on this grant every month. It may be small, but it is a lifeline.

“I don’t believe the new programme will work for those who need it most,” Raiters said.

Raiters also reiterated her support for a basic income grant, noting that the current R370 monthly SRD payment is insufficient to cover the rising cost of living.

“A basic income grant would ensure that beneficiaries can afford the necessities, including adequate food, each month,” she added.

The debate over the SRD grant comes amid South Africa’s persistently high unemployment rate and growing concern over social welfare provision. For many, the SRD grant represents not just financial support, but a measure of dignity and security.

Finance Minister confirmed SRD grant extension.

Finance Minister Enoch Godongwana confirmed that the SRD grant will continue to be paid for the next two years. The announcement was made during his Mid-Term Budget Policy Speech in Parliament on 12 November 2025 in the Western Cape. The extension will run until the end of March 2027, even though budget documents did not explicitly make provision for the grant. Godongwana stated that the government is finalising plans to offer employment programmes and skills development opportunities for the working-age population. He also reaffirmed the state’s commitment to supporting vulnerable and low-income households, noting that 61% of non-interest government spending goes toward services aimed at reducing the cost of living.

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Articles on grants

Previously, reports revealed that Godongwana admitted that scrapping the grant could have helped the government avoid a proposed VAT increase. In an interview with Times LIVE, the minister addressed the COVID-19 SRD grant, stressing its importance in supporting millions of South Africans, far beyond its original 2020 time frame. The minister’s comments came amid ongoing budgetary challenges. The original 2025 budget speech, scheduled for 19 February, was postponed following disagreements over its content, with a proposed 2% VAT hike cited as a major sticking point. National Treasury was reportedly exploring multiple options to cover a shortfall of roughly R60 billion. While a VAT increase has not been ruled out, officials are considering smaller adjustments to address the deficit while balancing public welfare commitments.

Civil society organisations have strongly criticised Godongwana for his previous remarks regarding possibly scrapping the grant. Groups including Black Sash and the Economic Justice Institute called on President Cyril Ramaphosa to reprimand the minister, arguing that less harmful alternatives exist to cover the funding shortfall without placing additional strain on the economy. These organisations accused Godongwana of “ransoming” the SRD grant, claiming that his comments risked the livelihoods and dignity of millions of beneficiaries to justify a tax increase.

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Source: Briefly News