South Africa’s Social Relief of Distress (SRD) grant, which has recently been increased from R350 to R370 per month, is facing significant backlash and legal challenges from advocacy groups.
They argue that the R20 increment is insufficient for millions of low-income citizens struggling to cover their basic needs amid rising inflation. This article explores the background of the SRD grant, why this small increase is contested, and what the court challenge could mean for the future of social welfare in South Africa.
Context of the SRD Grant Increase
Introduced during the COVID-19 pandemic, the SRD grant was a lifeline for millions of South Africans unable to work or support themselves.
The grant, initially set at R350, provided temporary financial relief, but as economic conditions worsened, the need for social support grew.
The government’s decision to increase the grant by only R20 to R370 in April 2024 has been met with strong opposition from civil society groups who believe it does little to address the needs of the vulnerable.
Why the R20 Increase Is Controversial
Advocacy groups argue that a R20 increase falls far short of what is needed to keep pace with inflation and rising living costs. As of early 2024, inflation in South Africa hovered around 7%, which has significantly driven up prices for essentials like food, electricity, and transport.
For example, Statistics South Africa reports that the average cost of a basic food basket is around R1,335 per month—much higher than the SRD grant amount. This mismatch between income support and basic living expenses has fueled dissatisfaction.
Typical Monthly Expenses for Low-Income Households:
| Expense Category | Average Monthly Cost |
|---|---|
| Basic Food Items | R1,335 |
| Utilities (Electricity, Water) | R200 |
| Transportation | R150 |
| Essential Toiletries | R70 |
| Total | R1,755 |
With a total estimated monthly need of R1,755, the R370 SRD grant barely scratches the surface, leaving beneficiaries with tough choices and unmet needs.
Legal Challenge: The Basis of the Court Case
The legal case against the SRD grant increase was filed in October 2024 by two advocacy groups: the Institute for Economic Justice (IEJ) and #PayTheGrants.
The court challenge in the Pretoria High Court centers around claims that the R370 grant fails to meet constitutional guarantees for social assistance.
Key Arguments from Advocacy Groups
1. Constitutional Right to Adequate Support
The South African Constitution enshrines the right to social assistance for citizens unable to support themselves. The groups argue that the grant’s current amount does not adequately fulfill this mandate, leaving recipients unable to meet basic living standards.
2. Inflation and Living Costs
With inflation driving up the price of essential goods and services, advocacy groups argue that the R20 increase is negligible and fails to offset the economic burden faced by beneficiaries. They propose that a minimum grant of R624 per month is necessary to cover basic needs.
3. Barriers to Access
The SRD grant requires online applications, which many vulnerable individuals cannot complete due to a lack of internet access or digital literacy. Advocacy groups believe this excludes those who need the grant most.
Government’s Position
The South African government, through the National Treasury, argues that further increasing the SRD grant presents fiscal challenges. Social grants, including the SRD, collectively cost the state around R2.5 billion per month.
The government maintains that balancing social support with fiscal sustainability is crucial to ensure resources are available for other critical sectors, like healthcare and education.
Rising Living Costs: The Struggle for Beneficiaries
Inflation and high living costs have made life increasingly difficult for SRD beneficiaries. Essentials like electricity, food, and transport have seen price increases that outpace grant adjustments.
For many, the R20 increase covers only a loaf of bread, highlighting the inadequacy of this small increment to address their broader financial struggles.
How Other Social Grants Compare
Other grants, such as the old age pension, have seen more substantial adjustments in recent years. For example, in 2023, the old age pension increased by R90 to a monthly total of R2,080.
The disparity between the SRD grant and other social grants underscores the need for more robust support for low-income and unemployed citizens.
Proposed Solutions
Advocacy groups and experts have suggested several measures to improve social support in South Africa:
- Increasing the Grant Amount: Raising the SRD grant to a minimum of R624 to better cover basic living expenses.
- Revising Eligibility Criteria: Expanding eligibility to include more individuals who may be struggling but are excluded under current rules.
- Investing in Job Creation: Focusing on employment programs to reduce dependence on social grants.
Economic Implications of Increasing the SRD Grant
Increasing the grant could offer immediate relief to millions but may strain public finances if not coupled with economic growth. The debate emphasizes the need for a balanced approach that combines social support with strategies to stimulate economic activity and job creation.
Real-Life Impact on Beneficiaries
For many beneficiaries, the R370 grant is their sole source of income. Personal stories reflect harsh realities—having to skip meals, cutting back on essentials, and struggling to pay for basic services.
While the grant offers some relief, it falls short of meeting daily needs, underscoring the urgency of finding a more effective solution.
The court’s decision on the SRD grant increase will likely influence the future of social welfare in South Africa. Whether it results in a grant increase or alternative reforms, the outcome will have significant implications for millions of vulnerable citizens.
