The SRD Grant introduced by SASSA is for the South African citizens who were suffering from financial distress due to the COVID-19 pandemic. The SRD grant was introduced in 2020 and initially catered for financial relief of up to an extent of R350 a month. The extension of grants continues, and the last extension that will be made has an expiry date of March 2025. However, due to the recent events, it is evident that the grant is not to be extended beyond this date.
Current Status of the SRD Grant
As of December 2024, the SRD grant is R370 per month, after an increase of R20 earlier this year. The government allocated R36.3 billion for the grant in the 2024/25 financial year, including rollovers and an additional R1.6 billion to fund the increase in grant value.
Government’s Position on Extension
Finance Minister Enoch Godongwana stated in the 2024 Medium-Term Budget Policy Statement that there is no intention to extend the SRD grant beyond March 2025; rather, the government will continue to focus on employment initiatives, amounting to R3.4 billion allocation for such initiatives in 2024/25. The National Treasury said any additional permanent funding for expanded grants must be sourced in a sustainable manner.
Shift towards Employment Initiatives
The intention of the government is to transfer grant support towards creating employment opportunities. Over the next three years, nearly 30.6 percent of the population will be under some form of social grant, minus the SRD grant. This picture casts in light the importance of sustainable jobs towards remedying the present economic situation.
Considerations of the Future
The SRD grant will expire in March 2025, but the government already considers it as a broad reform for the social grant system as a whole. Conferring skills development funding system proposals expected in this 2025 budget. Thus, it will be a seamless support system, connecting experience to job opportunities with social security.
Conclusion
Without a doubt, the SRD grants are one of the biggest channels for millions of South Africans to access public support in tough times. As this may end in March 2025, government attention begins to shift to sustainable job creation and extensive reforms for social support. It is important for beneficiaries and stakeholders to stay abreast of the policy changes in order to understand the dynamic changes in social assistance patterns in South Africa.
