The Social Relief of Distress (SRD) grant, first introduced during the Covid-19 pandemic, has now been extended until the end of March 2026. Meanwhile, the African National Congress (ANC) has recently renewed its promise to convert the SRD grant into a permanent Basic Income Grant (BIG). Hoodah Abrahams-Fayker, National Advocacy Manager at Black Sash, examines how the grant can be effectively repurposed to address poverty alleviation.
The SRD was first introduced during the pandemic and has been extended repeatedly since then. Have there been any studies of its impact and effectiveness in addressing poverty? Please provide the key results.
The SRD grant acknowledged the gap experienced by the ‘missing middle’ – those aged 18 to 59 not receiving social assistance. While it offered sustainable income support for unemployed people, a Black Sash study revealed that R350 was insufficient to meet grant recipients’ needs beyond avoiding starvation. A more urgent response is required beyond ad hoc extensions – the current SRD model requires financial and administrative adjustments to make a meaningful difference.
In 2025, the ANC and DSD publicly indicated support for transitioning the SRD into a permanent BIG. However, the budget does not allocate funding for the SRD beyond March 2026. What are the options for funding the proposed BIG?
The question is not whether we can afford basic income, but rather whether we can afford not to. Black Sash and other organisations have put forward proposals on how government can fund a BIG, which would help address South Africa’s worsening income inequality, poverty and unemployment. With various financing strategies, the BIG is feasible, affordable and would contribute to economic growth, job creation and improved food security, health and education. Funding options include reallocating public spending by evaluating budgets through a human rights lens – viewing expenditure as social investment rather than waste caused by inefficiencies. Tax revenue can be increased by adjusting company, inheritance, property, consumption and trade taxes, as well as progressively restructuring VAT. Efficient tax collection and compliance are essential. Fiscal drag must be addressed and financial governance strengthened by tackling corruption and curbing illicit financial flows.
Aside from the funding, what are some of the other reasons given by critics for not implementing a BIG?
Beyond funding, barriers include political will and public perceptions, particularly the belief that able-bodied people prefer not to work, rather than acknowledging the lack of job opportunities. Critics also argue that a BIG is unaffordable and would encourage dependency, turning South Africa into a welfare state. However, given the current lack of employment, the state has a constitutional duty to prevent hunger through financial support. National Treasury should invest in human capital and prioritise resources to progressively realise the right to social security through Basic Income Support.
Some Treasury proposals suggest converting the SRD into a ‘job-seeker grant’ or integrating it into labour activation programmes. What is your response to this, given South Africa’s structural unemployment challenges?
Black Sash objects to making grants conditional, such as linking access to actively seeking work. Conditionality adds administrative costs, requires capacity to monitor compliance and increases the risk of corruption. While a job-seekers grant may seem more acceptable to government, the reality is that there are no jobs.
Black Sash has been a vocal advocate for a BIG. What form do you believe a BIG should take – universal or targeted? Which groups should it cover, and what monthly amount would provide meaningful relief from poverty?
A universal basic income grant would have the broadest reach and greatest impact. It is also more cost-effective as it avoids the administrative burden of means testing. The SRD grant illustrates this – its means test and verification process has led to exclusionary outcomes, with many eligible applicants being denied. Black Sash supports a cradle-to-grave BIG, where those who do not need it repay through taxes. While South Africa’s current social assistance system is targeted and means-tested for children, the elderly and people with disabilities, we recognise that transitioning to a universal grant will take time. Therefore, we urgently call for the SRD grant to become a permanent grant for people aged 18 to 59 with limited or no income.
From your perspective, what have been the biggest implementation challenges with the SRD grant to date, and what practical lessons can be applied to ensure the successful rollout of a BIG?
The grant has provided some respite, but many have been excluded due to systemic issues. The fully digital application process assumes access to devices, data and connectivity – often lacking in poor and rural areas. The English-only platform and limited digital literacy further hinder access. Verification relies on outdated government databases, which can result in inaccurate information. SASSA also rejected applicants with positive bank balances without knowing the source of the meagre funds. The flawed eligibility criteria and weak appeals process deny many a vital lifeline. Though digitisation is inevitable, it must be supported by adequate infrastructure and a hybrid system to assist those in need.
Civil society has driven much of the advocacy for a BIG. What role could business play in this regard?
Business often sees a BIG as unaffordable, rather than viewing it as an investment with long-term returns. By supporting a BIG, businesses can benefit from increased consumer spending and entrepreneurial activity. The claim that a BIG discourages work is a myth – evidence shows it enables economic participation. Universality also avoids the administrative burdens that conditional grants might impose on businesses. A BIG promotes dignity, supports caregivers, stimulates local economies and puts food on the table.
Hoodah Abrahams-Fayker | National Advocacy Manager at Black Sash | hoodah@blacksash.org.za | www.blacksash.org.za
