Cape Town, South Africa — Finance Minister Enoch Godongwana announced sweeping increases to all eight SASSA grants during his 2025/2026 Budget Speech on Wednesday.
“Social grants are allocated R284.7bn in 2025/26. This allows us to increase the old age and disability grants by R130 to R2 315 in April, the Child Support Grant by R30 to R560 per month, and the foster care grant by R70,” he declared.
The proposals, tied to a contentious VAT hike, aim to shield vulnerable households from rising living costs while funding critical services.
Full breakdown of SASSA grant increases
The budget allocates R284.7 billion to social grants, benefiting nearly 28 million recipients. Below are the proposed increases for all eight SASSA grants:
1. Old Age Grant
- Increase: R130
- New monthly amount: R2,315 (from R2,185).
- Standardised payment amount alongside Disability and Dependency Grants
2. Disability Grant
- Increase: R130
- New monthly amount: R2,315 (from R2,185)
- Aligned with the Old Age Grant to address parity concerns.
3. Child Support Grant
- Increase: R30
- New monthly amount: R560 (from R530)
- Supports over 13 million children nationwide.
4. Foster Care Grant
- Increase: R70
- New monthly amount: R1,200 (from R1,130)
- Acknowledges rising costs for foster families.
5. COVID-19 Social Relief of Distress (SRD) Grant
- Extension: Renewed for 12 months until March 2026.
- Allocation: R35.2 billion.
- Monthly amount remains the same, at R370, but serves as a bridge toward permanent income support for the unemployed.
6. Care Dependency Grant
- Increase: R130
- New monthly amount: R2,315 (from R2,185)
7. Grant-in-Aid
- Increase: R30
- Supports beneficiaries requiring full-time care.
- New monthly amount: R560 (from R530)
8. War Veterans Grant
- Increase: R130
- Final amount: R2,335 (from R2,205)
Here’s a revised table (1–8) with clear summary of grant payments / changes:
| No. | Grant Name | Increase | Previous | New |
|---|---|---|---|---|
| 1 | Old Age Grant | R130 | R2,185 | R2,315 |
| 2 | Disability Grant | R130 | R2,185 | R2,315 |
| 3 | Child Support Grant | R30 | R530 | R560 |
| 4 | Foster Care Grant | R70 | R1,130 | R1,200 |
| 5 | COVID-19 SRD Grant | None | R370 | R370 |
| 6 | Care Dependency Grant | R130 | R2,185 | R2,315 |
| 7 | Grant-in-Aid | R30 | R530 | R560 |
| 8 | War Veterans Grant | R130 | R2,205 | R2,335 |
Funding the increases: VAT hike and tax measures
To fund the grants and public services, the Minister announced:
- A VAT increase of 0.5% in 2025/26 (to 15.5%) and another 0.5% in 2026/27 (to 16%), stating: “This will raise R28bn in additional revenue in 2025/26 and R14.5bn in 2026/27.”
- No inflationary adjustments to personal income tax brackets or medical tax credits.
Defending the VAT decision, Godongwana said: “Increasing corporate or personal income tax rates would generate less revenue, while potentially harming investment, job creation and economic growth. VAT is a tax that affects everyone. By opting for a marginal increase to VAT, its distributional effect and impact were cautiously considered.”
NOW Read: SASSA SRD Grant April 2025/26 application: 4 costly mistakes to avoid
Cushioning households
To offset rising costs, the Minister confirmed:
- “Expanding the basket of VAT zero-rated food items to include canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals.”
- “We are also not increasing the fuel levy for another year, saving consumers around R4bn.”
Long-term vision for social security
The COVID-19 SRD Grant extension sets the stage for permanent income support. Godongwana noted:
“As announced by the President in the state of the nation address, the SRD will be used as a basis for the introduction of a sustainable form of income support for unemployed people. The future form and nature of the SRD will be informed by the outcome of the review of active labour market programmes, expected to be completed by September 2025.”
What’s next?
The proposals require parliamentary approval. Godongwana urged lawmakers to support the budget, quoting Amilcar Cabral:
“The people are not fighting for ideas, for the things in anyone’s head. They are fighting to win material benefits, to live better and in peace, to see their lives go forward, to guarantee the future of their children.”
For updates on grant payment dates and eligibility, visit SASSA’s official portal: [https://www.sassa.gov.za/]
