In the 2025 Budget Speech delivered on March 12, Finance Minister Enoch Godongwana announced significant measures to strengthen South Africa’s social safety net.
Central to these initiatives is the extension of the Social Relief of Distress (SRD) grant and the enhancement of various other social grants, reflecting the government’s commitment to alleviating poverty and supporting vulnerable populations.
Extension of the SRD Grant
The SRD grant, initially introduced during the COVID-19 pandemic as a temporary relief measure, has been extended in its current form until March 31, 2026.
This extension ensures that over 10 million beneficiaries continue to receive crucial financial support. The grant amount remains at R370 per month, with an allocation of R35.2 billion set aside for this purpose.
Increases in Other Social Grants
To further bolster social support, the government has allocated R284.7 billion for the 2025/26 fiscal year, facilitating above-inflation increases across various grants:
- Old Age and Disability Grants: Both grants will see an increase of R130, bringing the monthly payment to R2,315.
- Child Support Grant: This grant will rise by R30, resulting in a new monthly total of R560.
- Foster Care Grant: An increase of R70 will adjust this grant to R1,250 per month.
These adjustments aim to mitigate the impact of rising living costs and a recent 0.5% increase in Value-Added Tax (VAT).
Comprehensive Social Safety Net
With nearly 28 million beneficiaries accessing social grants, South Africa maintains one of the most extensive social safety nets among emerging economies.
This extensive coverage underscores the nation’s dedication to addressing poverty and inequality while ensuring fiscal sustainability.
Future of the SRD Grant
The SRD grant serves as a foundational element for developing sustainable income support mechanisms for the unemployed.
A comprehensive review of active labor market programs is scheduled for completion by September 2025, which will inform the future structure and nature of the SRD grant.
Additional Allocations
Beyond social grants, the budget includes provisions to enhance security and defense capabilities:
- Defense and Correctional Services: An allocation of R9.4 billion is designated for these sectors to support South Africa’s participation in peacekeeping missions and to modernize defense forces.
- Combating Financial Crimes and Corruption: Recognizing the importance of economic integrity, the budget emphasizes measures to fight financial crimes and corruption, thereby promoting stability and social well-being.
Summary of Social Grant Adjustments in 2025/26
| Grant Type | Previous Amount (R) | Increase (R) | New Amount (R) |
|---|---|---|---|
| Old Age Grant | 2,185 | 130 | 2,315 |
| Disability Grant | 2,185 | 130 | 2,315 |
| Child Support Grant | 530 | 30 | 560 |
| Foster Care Grant | 1,180 | 70 | 1,250 |
| SRD Grant | 370 | 0 | 370 |
The 2025 Budget reflects a balanced approach to economic challenges, prioritizing the needs of vulnerable populations through the extension and enhancement of social grants.
These measures demonstrate the government’s commitment to fostering an inclusive and equitable society while maintaining fiscal responsibility.
FAQs
What is the duration of the SRD grant extension?
The SRD grant has been extended until March 31, 2026, providing continued support for beneficiaries.
How will the recent VAT increase affect social grant recipients?
To offset the impact of the 0.5% VAT increase, the government has implemented above-inflation increases in various social grants.
What is the purpose of the additional allocation to defense and correctional services?
The R9.4 billion allocation aims to support peacekeeping missions and modernize South Africa’s defense forces.