SASSA SRD Grant Increase – SASSA Boosts Relief to R370

On Wednesday evening, March 13th, 2024, Finance Minister Enoch Godongwana took to the podium to deliver 2024 Budget Speech. In the National Assembly, he revealed the important news of the SRD (Social Relief of Distress) grant—commonly referred to as R350 because of its value, has been increased from R350 per month to R370 per month.

This change reflects a 5.7% rise, resulting in an R20 increase from R350 to R370 starting from April 1st, 2024.

The SRD program was introduced in May 2020, during the COVID-19 pandemic as part of the President’s plan to help the poor, unemployed and vulnerable individuals who lost their jobs during the pandemic. The official news of grant increase spread like a relief for around 9 million South Africans who are reliant solely on the COVID-19 SRD grant.

In the Budget Speech of 2024, Finance Minister Enoch Godongwana outlined intentions to increase the SRD grant without specifying the month of implementation.

Finally, during a session in the National Assembly on March 13th, 2024, the Finance Minister officially announced the decision to raise the grant with the following statement:

“I am pleased to say that we have found consensus that in between, subject to the finalization of the comprehensive social security programme, we’ll increase the R350 to R370 by the 1st of April this year. That is part of the progressive realization of the basic rights of our people.”

For the fiscal year 2024/2025, the government has a budget of R33.6 billion for social grants, down from the original R36 billion. However, due to restrictions, this figure was lowered downward. Despite these limits, the government prioritized citizen welfare by increasing the SRD grant. This decision demonstrates the dedication to assisting citizens despite budgetary challenges.

The SASSA SRD grant was developed in reaction to the COVID-19 crisis, which resulted in widespread business closures and significant job losses. Originally intended to give help during the pandemic, its scope grew as the government recognized the ongoing need for support.

Therefore, the grant has been extended many times. In accordance with this recognition, the government has extended the grant until March 2025, with the possibility of additional extensions in the future.

The government are trying to secure a sustainable financial source which is a huge challenge. Efforts are currently being made to find ways to ensure the program’s long-term financial support.

During the Medium Term Budget Policy (MTBP) session on November 2nd, 2023, the Finance Minister discussed the government’s plans to prolong the SRD grant. He expressed the issue with the following words:

“If that or a similar type of new grant is made permanent, beneficiaries are projected to expand from 27.3 million in 2023/24 to 40.4 million in 2040/41, which will cost 3.8 % of GDP in 2040/41 and require a corresponding permanent source of funding, such as additional revenue measures.”

With the increase in the grant from R350 to R370, the government believe that the number of beneficiaries will also rise by 1.5%. According to this percentage, the number of beneficiaries will rise from 18.4 million to 19.2 million by 2025.