In his 2025 budget speech, Finance Minister Enoch Godongwana made a significant announcement that has stirred controversy among various civil society organisations. Despite increasing other social grants, including those for the elderly, war veterans, persons with disabilities, and care dependency grants, Godongwana chose no SRD Grant increase but instead extend it to March 2025.
Many critics, particularly Save SA, argue that this amount is insufficient to address the growing economic challenges faced by struggling households in South Africa.
Save SA’s spokesperson, Tebogo Mashilompane, expressed frustration over the decision, asserting that the SRD grant should have been increased to at least R1,200 or even R1,500 to provide better support to vulnerable South Africans. The SRD grant was introduced to provide temporary financial relief to individuals facing extreme hardship, particularly those who do not qualify for other forms of social assistance.
However, as inflation continues to rise and more South Africans struggle with the cost of living, many believe that the grant is no longer enough to meet the basic needs of the country’s poorest citizens.
News: SASSA Social Grants Increase & SRD Grant Extended Until March 2026
The SRD Grant Increase: A Lifeline for Vulnerable South Africans
The SRD grant increase has become a key topic of debate, with many civil society groups arguing that the current amount is far too low to adequately support those in need.
Initially introduced in 2020 as a response to the COVID-19 pandemic, the grant was meant to provide temporary relief to individuals who were unemployed and did not qualify for other social grants. It was set at R350 at the time, but in 2022, the amount was increased to R350 in line with the rising cost of living.
While the SRD grant increase has been beneficial for many households, it has faced ongoing criticism for being inadequate to meet the needs of those it aims to help. With inflation rising steadily in recent years, R350 simply does not stretch far enough to cover the basic needs of food, transport, and utilities.
Civil society groups, including Save SA and the Black Sash, argue that the government should have increased the SRD grant to a more realistic and sustainable amount, such as R1,200 or R1,500, to ensure that vulnerable households can survive in a challenging economic environment.
The Arguments for an SRD Grant Increase
Tebogo Mashilompane, speaking on behalf of Save SA, explained the organisation’s position in an interview with Newzroom Afrika. According to Mashilompane, the government has the financial resources to increase the SRD grant, but has failed to address key issues like corruption and mismanagement of funds. “The money is there,” Mashilompane said. “The problem is that the government is unwilling to address these issues.”
This criticism points to the widely perceived issue of corruption within South Africa’s public sector, particularly with regards to the tender system, which is seen as a major contributing factor to inefficiency and wasteful expenditure.
According to Mashilompane, the government should focus on addressing corruption before attempting to justify its failure to increase grants. He argued that the tender system could be used more effectively by ensuring that it is only applied when there is no in-house capacity to execute projects.
Moreover, many people argue that the current SRD grant of R370 is too low to provide meaningful support to those who need it the most. The South African government has a responsibility to ensure that its most vulnerable citizens are not left behind, especially given the current economic climate. With rising food prices, higher utility costs, and a sluggish economy, many individuals and families are finding it increasingly difficult to make ends meet.
Increasing the SRD grant to a more reasonable amount like R1,200 or R1,500 could go a long way toward alleviating the financial burden on vulnerable households. It could help recipients purchase essential goods and services, such as food, medical supplies, and transportation, and provide a measure of financial stability in times of crisis.
The Impact of the Proposed VAT Increase on SRD Grant Beneficiaries
In addition to the concerns over the SRD grant increase, Godongwana’s proposed budget also includes a controversial increase in the Value-Added Tax (VAT) rate. The VAT rate is set to increase by 0.5 percentage points in both 2025 and 2026, bringing the total VAT rate to 16% by the 2026/27 fiscal year.
This move has drawn widespread criticism, particularly from civil society groups and political parties who argue that it will disproportionately affect low-income households and grant beneficiaries.
Save SA, the Black Sash, and other organisations argue that the VAT increase will exacerbate the financial difficulties faced by vulnerable South Africans. The VAT increase would mean higher prices for essential goods and services, including food, transport, and utilities. This would place an even greater strain on households already struggling to survive on low incomes.
Tebogo Mashilompane of Save SA believes that the government should prioritize addressing issues like corruption and mismanagement before implementing further austerity measures, such as the VAT increase. He suggested that the government should explore alternative sources of revenue, such as tackling illicit financial flows and reducing wasteful expenditure, rather than burdening low-income citizens with higher taxes.
The Black Sash’s Criticism of the SRD Grant and VAT Increase
The Black Sash, a prominent South African civil society organisation that advocates for social justice and human rights, also voiced its concerns over the government’s budget.
The organisation accused Godongwana of using the SRD grant as leverage to justify the VAT hike, arguing that this approach unfairly punishes the poor. In a statement, the Black Sash said: “To say the SRD grant is the reason he is in trouble now is shocking. As a society, we should be wary of the minister’s language.”
The Black Sash has long been a vocal advocate for an SRD grant increase and other forms of social assistance for vulnerable South Africans. The organisation’s concerns about the proposed budget reflect a broader fear that the government is not doing enough to address the root causes of poverty and inequality in the country.
Instead of merely tinkering with the tax and grant systems, critics argue that the government needs to implement more comprehensive policies aimed at reducing poverty and creating economic opportunities for all South Africans.
The Road Ahead: Will Godongwana’s Budget Pass?
It remains to be seen whether Godongwana’s proposed budget will pass in Parliament. Several political parties, including the Democratic Alliance (DA), have already rejected the budget, arguing that it does not do enough to address the needs of ordinary South Africans. The DA has also expressed concerns about the VAT increase and the lack of significant support for low-income households.
Despite the opposition, Godongwana’s budget proposal is expected to pass with the support of the ANC, the largest partner in the ruling Government of National Unity (GNU). However, civil society groups and political parties alike will continue to push for a more inclusive budget that better reflects the needs of South Africa’s most vulnerable citizens.
The Urgent Need for an SRD Grant Increase
The ongoing debate over the SRD grant and the proposed VAT increase highlights the growing concerns about the South African government’s ability to address the needs of its most vulnerable citizens. While the SRD grant has provided crucial financial support for many households, it is clear that the current amount of R370 is insufficient to meet the needs of those facing extreme poverty and hardship.
Civil society organisations like Save SA and the Black Sash are calling for an SRD grant increase, arguing that the government has the financial resources to provide more meaningful support. At the same time, critics are concerned that the proposed VAT increase will exacerbate the financial difficulties faced by low-income households.
As South Africa continues to grapple with economic challenges, it is essential that the government listens to the concerns of its citizens and makes decisions that prioritize the welfare of the most vulnerable members of society.
