South Africa’s Social Relief of Distress (SRD) grant, which provides financial support to millions of unemployed and low-income individuals, has become the center of legal controversy.
The government’s decision to increase the grant from R350 to R370 in April 2024 has been met with criticism, with advocacy groups arguing that the R20 increase is insufficient to cover rising living costs.
As the case moves through the Pretoria High Court, the outcome could shape future social welfare policies in the country.
The SRD Grant: A Lifeline for Many
The SRD grant was initially introduced in 2020 as a temporary relief measure during the COVID-19 pandemic. Its purpose was to provide financial assistance to those without any form of income.
Over the years, the grant has been extended multiple times due to persistent economic challenges, but its value has remained relatively low.
Current SRD Grant Details
| Category | Details |
|---|---|
| Grant Amount | Increased from R350 to R370 in April 2024 |
| Eligibility | Monthly income below R624, application via SASSA |
| Reason for Increase | Government cites budget constraints |
| Legal Challenge | Advocacy groups argue R370 is insufficient for basic living expenses |
Despite the increment, many believe it fails to keep up with inflation and rising costs of essentials, prompting legal action from advocacy groups.
The Legal Battle: Why Is the SRD Increase Being Challenged?
Two advocacy groups, the Institute for Economic Justice (IEJ) and #PayTheGrants, have filed a lawsuit challenging the constitutionality of the current SRD grant amount. Their key arguments include:
- Failure to meet basic living needs – With inflation at around 7% in early 2024, essential goods have become more expensive, and R370 is far below the cost of survival.
- Violation of constitutional rights – The South African Constitution guarantees social assistance for those in need. Advocacy groups argue that an amount this low does not fulfill that mandate.
- Exclusion of vulnerable individuals – The online application process prevents some of the poorest citizens from accessing the grant, as they may lack internet access or digital literacy.
The Reality of Rising Costs
South Africans have faced significant price increases in food, utilities, and transportation, making the R20 increase seem negligible.
| Expense Category | Average Monthly Cost (2024) |
|---|---|
| Basic Food Items | R1,335 |
| Utilities (Electricity, Water) | R200 |
| Transportation | R150 |
| Essential Toiletries | R70 |
| Total Living Costs | R1,755 |
As the table shows, the SRD grant does not come close to covering even basic survival costs. Beneficiaries are forced to make impossible choices, often going without food or essential services.
Government’s Stance on the SRD Grant
The South African government, particularly the National Treasury, argues that increasing the grant beyond R370 is financially unsustainable. Key points from the government’s response include:
- High social spending – The government already spends around R2.5 billion per month on social grants.
- Budget constraints – Further increases may strain public resources, affecting funding for healthcare, education, and infrastructure.
- Long-term economic stability – A sustainable approach is needed, focusing on job creation rather than increasing reliance on grants.
Despite this, advocacy groups insist that social relief must align with inflation rates to remain effective.
Alternative Solutions Proposed
Advocacy groups have suggested several alternatives to ensure better support for low-income citizens:
- Increase the SRD grant to R624 – Aligning the grant with the upper-bound poverty line so recipients can afford basic necessities.
- Expand eligibility criteria – Allow more struggling individuals to qualify, including those slightly above the income threshold.
- Improve accessibility – Offering offline application options to accommodate those without internet access.
- Invest in job creation – Developing programs that provide employment opportunities to reduce long-term grant dependency.
The Potential Economic Impact
While a higher SRD grant would provide immediate relief, economists warn that excessive social spending without economic growth could lead to:
- Higher government debt – If the government borrows more to fund social grants.
- Tax increases – To cover the additional expenses, affecting middle-class taxpayers.
- Reduced spending on public services – If funds are redirected toward grants instead of development projects.
However, some economists argue that higher social spending can boost the economy, as it increases consumer spending, benefiting businesses and creating jobs.
Real-Life Impact on Beneficiaries
For those relying on the SRD grant, the R20 increase barely makes a difference. Many recipients have shared their struggles:
- “R20 doesn’t even cover a loaf of bread. I still can’t afford electricity or transport.” – Sibusiso, 29, unemployed.
- “We expected at least R500. At this rate, we’re just surviving, not living.” – Thandi, 35, mother of two.
- “I applied, but I don’t have internet access. It’s impossible for some of us.” – Nkosi, 42, struggling to access the grant.
These personal stories highlight the urgent need for a more substantial social safety net that can truly support vulnerable individuals.
What’s Next?
The Pretoria High Court is currently reviewing the case, with a ruling expected in the coming months. If the court sides with advocacy groups, the government may be forced to:
- Re-evaluate the SRD grant amount
- Expand eligibility and accessibility
- Develop new policies for social relief funding
Regardless of the outcome, this case has sparked a nationwide debate on social welfare and how South Africa should support its most vulnerable citizens in an era of economic uncertainty.
