SASSA SRD R350 Grant Extended Until March 2025 Latest Update

The latest update from the South African Social Security Agency (SASSA) reveals that the much-needed Social Relief of Distress SRD R350 grant extended until March 2025. This extension comes as a significant relief for many individuals and families struggling to make ends meet.

Enoch Godongwana, the finance minister of South Africa, revealed the extension of the SASSA SRD R350 grant for an additional year until March 2025, with a budget allocation of R34 billion. This announcement was made during the National Treasury’s Medium-Term Budget Policy (MTBP) on November 2nd, 2023.

In response to the COVID-19 pandemic in 2020, the South African government introduced the Social Relief of Distress (SRD) program. As the pandemic swept across the globe, leaving millions affected, South Africa faced similar challenges. Businesses shuttered, unemployment soared, and families grappled with financial strain.
Recognizing the urgency, the government launched the SRD R350 grant, providing financial assistance to those who lost jobs or struggled to make ends meet. Now, even after the pandemic has subsided, the SRD grant continues to play a crucial role. Many South Africans still confront significant hardships; grant is a lifeline for them, offering essential funds for food, basic necessities, and stability in the face of ongoing adversity.

The SRD R350 grant, which was set to end in 2024 , has now been extended for an additional period until March 2025. This extension aims to offer continued assistance to those relying on this financial aid to meet their basic needs and cope with the impact of the ongoing economic downturn.

Finance Minister Enoch Godongwana announced that a substantial amount of R34 billion has been allocated to fund the extension of the SRD R350 grant until March 2025. This financial commitment underscores the government’s recognition of the important role this grant plays in supporting the most vulnerable members of society. Let’s break down the details:

1.  R350 Relief Grant Extension

2.  Budget Adjustments

3.  Strategic Allocation

4.  Covid-19 Social Relief of Distress Grant

5. Social Protection Expenditure

6. Projected Beneficiaries

By considering the role played by the R350 grant in supporting millions of citizens, President Cyril Ramaphosa has emphasized its importance as a lifeline for vulnerable South Africans. However, sustaining this grant is a challenge due to the need for consistent funding.

To address this, the government is actively exploring ways to secure long-term funding for the SRD grant. Their commitment remains unwavering, even they face financial constraints.

Additionally, the National Treasury is conducting a comprehensive review of the entire social grant system. This evaluation will inform strategic plans for 2025 and beyond. Finance Minister Enoch Godongwana has underscored the importance of ensuring the grant’s continuity while maintaining the other fiscal responsibilities.

Specifically, R945.9 billion will be directed toward social protection transfers, which include essential grants such as the old age grant, child support grant, disability grant, and the COVID-19 social relief of distress grant. South Africa’s social protection expenditure, measured as a percentage of gross domestic product (GDP), ranks among the highest in developing countries.

Looking ahead, projections indicate that by 2040/41, the number of social assistance beneficiaries (excluding the temporary COVID-19 relief grant) will surge to 22.5 million. Consequently, sustained spending on social grants will amount to 3% of GDP annually.   This commitment reflects South Africa’s dedication to supporting vulnerable populations and ensuring their well-being.

According to input from unions and civil society, an increase in the SRD stipend could provide support to individuals who were previously not part of the labor market. Despite pressure from these groups advocating for a higher award, Minister Enoch Godongwana has announced that the SRD grant will remain at R350 and will be extended until the end of March 2025.

In October 2023, while other grants saw increments, the Social Relief of Distress (SRD) grant, commonly known as the R350 grant, remained unchanged. The future of the grant poses an ongoing fiscal challenge, with an annual cost of R36 billion to the fiscus. The government acknowledges that the medium-term extension serves as a temporary solution following their comprehensive examination of the entire social grant system.