In his 2025 State of the Nation Address (SONA), President Cyril Ramaphosa reaffirmed the government’s commitment to expanding the SASSA (South African Social Security Agency) Relief of Distress (SRD) grant, positioning it as the foundation for a sustainable income support system for unemployed South Africans.
With discussions on poverty alleviation intensifying, the grant could see an increase and reach over 18 million beneficiaries, up from the current 10.5 million recipients
SRD grant expansion and possible increase
As part of the government’s broader strategy to combat poverty, Ramaphosa confirmed that the SRD grant will be expanded and strengthened providing more unemployed South Africans with financial relief. The President emphasised its role in addressing extreme poverty and ensuring long-term economic security, stating:
“The Social Relief of Distress Grant is an essential mechanism for alleviating extreme poverty. We will use this grant as a basis for the introduction of a sustainable form of income support for unemployed people.”
A recent High Court ruling solidified the SRD grant as a permanent part of South Africa’s social welfare system, further pushing the government to ensure its sustainability. However, this expansion comes with significant financial challenges, as extending the grant to 18 million recipients would require an additional R35 billion per year.
SRD as the foundation for sustainable income support
The President acknowledged that while social grants have played a crucial role in poverty alleviation, the government must go further to create a more integrated and accessible support system.
“We are building an integrated system of support for poor and unemployed people. We are strengthening existing programmes from job search support to public employment and making sure that together they provide people with pathways out of poverty,” Ramaphosa explained.
He also emphasised the need for simplified access to government assistance, ensuring that individuals can obtain comprehensive support from a single point of entry rather than navigating multiple agencies.
Rather than expecting those in need to approach several government agencies separately, a citizen should be able to go to one place to receive all the support they need, he said.
Growing calls for a permanent basic income grant (BIG)
Ramaphosa’s remarks have further fueled calls to transform the SRD grant into a permanent Basic Income Grant (BIG). Various labor organisations and political parties have been advocating for this shift, emphasising the need for universal access and increased financial support.
Cosatu parliamentary councillor Matthews Parks highlighted the importance of ensuring all eligible individuals receive the grant while also providing opportunities for skills development and employment.
All eligible persons must be enabled to access it. Its participants must be supported to access skills, training, and employment opportunities, Parks stated.
Meanwhile, the GOOD Party has pushed for a substantial increase in the grant amount, calling for a monthly payment of at least R999. The party’s Secretary-General Brett Herron, said:
“This commitment must translate into the implementation of a Basic Income Grant of at least R999 a month in the next financial year.”
Funding challenges and treasury concerns
Despite growing support, National Treasury has raised concerns about the financial feasibility of an expanded or permanent income grant. A full Basic Income Grant (BIG) could cost the country R400 billion annually, requiring significant tax increases or alternative funding mechanisms.
However, the High Court ruling on the SRD grant has challenged the government’s stance on affordability, stating that fiscal constraints cannot justify excluding people from poverty relief. This places additional pressure on the government to secure long-term funding solutions.
What’s Next?
More details on the future of the SRD grant, including potential budget allocations, expansion plans, and increases in value, are expected to be announced in the 2025 Budget Speech by Finance Minister Enoch Godongwana on 19 February.
Ramaphosa also emphasised that investing in education and employment programs remains central to breaking the cycle of poverty, saying:
“Central to our efforts to end poverty and to develop our economy is to provide decent, quality education to every young South African.”
With growing political and social pressure, the government now faces critical decisions on how to balance social welfare commitments with economic constraints. The coming months will determine whether the SASSA SRD grant will be expanded, increased, or even transformed into a permanent Basic Income Grant.
