SRD Grant Extended: The SRD grant extension in South Africa has reignited national discussions around the possibility of introducing a Universal Basic Income (UBI). As economic pressure continues and unemployment rates remain high, the government’s decision to extend the Social Relief of Distress (SRD) grant until March 2026 is seen by many as more than a temporary solution—it could be the foundation for a long-term Basic Income Support (BIS) system.
President Cyril Ramaphosa’s 2025 State of the Nation Address highlighted this intention, noting the SRD grant could form the basis for “a sustainable income support system for the unemployed.” The move comes amid growing pressure from civil society organizations, economists, and the public to address South Africa’s widening income inequality and ongoing joblessness. So, what does this mean for everyday South Africans—and could UBI soon become a national reality?
SRD Grant Extended
| Feature | Details |
|---|---|
| SRD Grant Value (2025) | R370 per month |
| Extension Period | Now extended to March 2026 |
| UBI Pilot or Next Step? | Potential foundation for permanent Basic Income Support |
| Budget Allocation (2025/2026) | Over R34 billion allocated for SRD grant funding (National Treasury) |
| Official SRD Portal | srd.sassa.gov.za |
The extension of the SRD grant to March 2026 isn’t just a response to short-term need—it’s a signal that South Africa may be moving toward a more inclusive and permanent income support system. With rising economic inequality, high unemployment, and growing political momentum, the country is uniquely positioned to pilot a form of Universal Basic Income in the years ahead.
Whether this transformation happens gradually or rapidly, the foundations are being laid today. Understanding how SRD evolves and staying informed about changes to social support is crucial for every South African household.
What Is the SRD Grant?
The Social Relief of Distress (SRD) grant was introduced in May 2020 as part of the government’s emergency response to the COVID-19 pandemic. Initially valued at R350 per month, it was aimed at unemployed South Africans with no access to income or other social grants. In 2024, the grant was increased to R370 and extended through March 2026 following overwhelming demand.
To qualify, applicants must:
- Be South African citizens, permanent residents, or refugees
- Be between the ages of 18 and 59
- Not receive other social grants or UIF (Unemployment Insurance Fund)
- Pass a means test (monthly income less than R624)
Applications are submitted online via the official SRD portal, WhatsApp, or SASSA chatbot channels. Currently, over 9 million South Africans benefit from the SRD grant monthly.
From Temporary Relief to Long-Term Support
In his 2025 State of the Nation Address, President Ramaphosa emphasized the need for a more sustainable income support framework. He explained that the SRD grant, while temporary, is providing the groundwork for broader reforms: “We will use this grant as a basis for the introduction of a sustainable form of income support for unemployed people.”
This aligns closely with the African National Congress (ANC) 2024 manifesto, which proposes phasing in a Basic Income Support model. The goal is to eventually build a comprehensive social safety net that’s less reliant on employment as a condition for survival.
Economists note that the SRD has successfully reached millions and helped reduce poverty intensity, but many argue R370 is still far below the food poverty line—the minimum income required to meet basic food needs, currently pegged at R624 per month.
What Is Universal Basic Income (UBI)?
Universal Basic Income (UBI) refers to a policy whereby every adult receives a fixed, regular payment from the government, regardless of employment or income status. The payment is unconditional, consistent, and universal, designed to ensure no one falls below a certain income threshold.
Core principles of UBI:
- Unconditional: No strings attached, no means testing
- Universal: Available to all citizens
- Sustainable: Paid regularly and predictably
While full UBI hasn’t been permanently adopted anywhere, trials in Finland, Kenya, and India show promise. In South Africa, the current SRD could become a stepping stone toward a tailored UBI model, sometimes referred to locally as a Universal Basic Income Guarantee (UBIG).
Why South Africa Is a Strong Candidate for UBI
Several factors make South Africa a unique and compelling case for piloting and eventually implementing UBI:
1. Massive Unemployment
The country’s unemployment rate, standing at over 32%, is one of the highest in the world. Youth unemployment is even worse—nearing 60%.
2. Severe Inequality
South Africa remains among the most unequal societies globally, according to the World Bank. UBI is seen as a tool to close the gap.
3. Existing Distribution Infrastructure
SASSA has robust systems in place for grant delivery via mobile tech, post office, and bank accounts—making scaling relatively easier.
4. Strong Civil Society Advocacy
Organizations like the Institute for Economic Justice (IEJ) have proposed detailed plans for a UBI funded through progressive tax reform.
“We believe a universal grant has a far greater impact on poverty and inequality than targeted programs,” says the IEJ.
How Would South Africa Fund a Basic Income?
One of the main concerns critics raise is affordability. A full UBI is costly, especially for a middle-income country. But experts suggest a combination of fiscal tools could make it viable.
Proposed Funding Sources:
- Wealth taxes on assets exceeding certain thresholds
- Income tax restructuring to enhance fairness
- Carbon and sin taxes on polluting or harmful industries
- Reducing tax evasion and wasteful expenditure
According to the IEJ, providing R624 per month to every working-age adult would cost about 6.3% of GDP, but this could be offset by removing inefficient subsidies and improving tax compliance.
What Might a South African UBI Look Like?
While full UBI is ambitious, experts recommend a phased approach:
Phase 1: Strengthen SRD
- Increase the value to R624/month (poverty line)
- Extend eligibility and reduce barriers to entry
Phase 2: Introduce Basic Income Support
- Offer regular payments to unemployed and low-income individuals
- Begin integrating support into the broader tax and social security systems
Phase 3: Move Toward Universality
- Include all adults regardless of income
- Link benefits to inflation
- Fully replace or complement existing grants
This step-by-step plan allows policymakers to manage fiscal impact while monitoring outcomes.
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How This Affects You
If you’re currently receiving the SRD grant, here’s what to expect:
- R370 monthly payments continue through March 2026
- No need to reapply unless prompted by SASSA
- Always check your status and banking details at srd.sassa.gov.za
Those not currently eligible should watch for potential policy changes. With a broader Basic Income Support scheme in development, more citizens could qualify in the near future.
If you’re a financial planner, community worker, or policymaker, now is the time to:
- Engage in public consultations and budget proposals
- Educate clients or constituents about long-term financial planning with social grants
- Advocate for systems that support job creation alongside income guarantees
FAQs On SRD Grant Extended
Is the SRD grant now a permanent UBI?
Not yet. It’s still a temporary, means-tested program, but it’s a major step toward building a more permanent Basic Income Support system.
Will the SRD amount go up soon?
It could. There’s a growing push to align the grant with the food poverty line (R624/month), but no official increase has been announced yet.
Can I apply for SRD if I receive another grant?
No. SRD is not available to those receiving other social grants (e.g., Child Support Grant, Old Age Pension).
What does “Universal” mean in UBI?
It means everyone qualifies, regardless of employment, income, or wealth—unlike the current SRD which is targeted.
Where can I track updates?
Official info is available via:
- SASSA website
- Department of Social Development
- Major government announcements like the Mid-Term Budget Statement
