“Getting It Ready for Implementation”: SA Might Be Getting a New Social Grant To Replace the SRD

• The Department of Social Development is working on a new Basic Income Support grant that could replace the SRD grant
• The SRD grant was only ever meant to last six months but grew to support over 8 million South Africans
• President Cyril Ramaphosa has backed the new grant and promised in his 2026 State of the Nation Address that the rework would happen this year

South Africans who rely on the SRD grant could soon see it replaced by something new.

A report by BusinessTech, published on 17 June 2026, outlined the government's plans for a Basic Income Support grant that is being drafted to take the place of the existing R370 per month SRD payment.

The Department of Social Development said it hopes to wrap up the policy by March 2027, which would then allow the legislative process to begin in the 2027/28 financial year.

The SRD grant was launched in 2020 during the Covid-19 pandemic as a short-term measure, originally meant to run for just six months. It never stopped. More than 8 million people came to depend on it, and the government kept extending it year after year. The current extension runs until 31 March 2027 and costs an additional R36.4 billion in the latest budget.

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Why the government wants to replace the SRD grant

The department has described the SRD grant as a success in reducing hunger and poverty, noting that recipients mostly used the money for food, electricity and clothing. Research also found that the grant helped people stay active in looking for work.

But the long-term plan was never to keep it going indefinitely. The new Basic Income Support grant is designed to be more structured, with a key focus on linking recipients to employment opportunities and other economic pathways so that people are not permanently dependent on the payment.

A draft policy was first put before cabinet in November 2024 but was sent back to be strengthened. The updated version now includes a strategy for connecting grant recipients to work and livelihood opportunities, and research to support the new approach was completed in February 2026.

What happens next for the new social grant

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The department has laid out a clear timeline. Engagements with the National Treasury are expected to wrap up by July 2026, followed by an updated draft policy and impact assessment being submitted to the presidency. Cabinet will be asked to approve the draft for public comment in August 2026. Public input will then shape the final version, which goes back to cabinet for approval in March 2027.

From there, changes to the Social Assistance Act will need to be drafted before the grant can officially be put into law.

More on South African social grants

• Briefly News recently reported on a Somalian refugee who broke down outside a SASSA office after her grant was cut off.
• The full breakdown of SASSA's new livelihood grant plans and what the 2026 budget means for millions of South Africans was laid out.
• An 18-year-old mum of three also made headlines after showing off the stunning home she says she built using grant money.

Source: Briefly News