CAPE TOWN, SOUTH AFRICA – MAY 12: People with face masks seen at a South African Social Security Agency (SASSA) building on May 12, 2020 in Cape Town, South Africa. The South African goverment announced that a R350 grant to help unemployed people not receiving any form of subsidy or grant during the Covid-19 pandemic would be paid from May to October. It will be open to South Africans, refugees and permanent residents already in the Department of Home Affairs’ system and those residing within the borders of South Africa. (Photo by Gallo Images/Nardus Engelbrecht)
CAPE TOWN, SOUTH AFRICA – MAY 12: People with face masks seen at a South African Social Security Agency (SASSA) building on May 12, 2020 in Cape Town, South Africa. The South African goverment announced that a R350 grant to help unemployed people not receiving any form of subsidy or grant during the Covid-19 pandemic would be paid from May to October. It will be open to South Africans, refugees and permanent residents already in the Department of Home Affairs’ system and those residing within the borders of South Africa. (Photo by Gallo Images/Nardus Engelbrecht)
With upwards of 10 million people applying for the R350 grant in 2021, it’s fair to say that this financial safety net has been a roaring success with the impoverished public. However, the longevity of this fund has always been an issue.
What will replace the R350 grant?
The Treasury is now working with the Presidency and the Department of Social Development to tackle the poverty gap – and this will include looking at an alternative for the R350 grant. That’s what Finance Minister Enoch Godongwana told Parliament on Wednesday, confirming that the popular payment will eventually be replaced by something else.
Godongwana also said that in terms of achieving sustainable relief for vulnerable households, the baseline budget for a social assistance grant is about R205 billion for 2022 to 2023.
SRD payment dates and expiry window
Introduced at the beginning of the COVID-19 pandemic last April, applicants flocked to claim their monthly handouts. However, the scheme has expired twice before, and by March 2022, it’s set to terminate for the final time.
Godongwana has admitted that he’s not the biggest fan of creating more ‘social grants’, and shortly after he was appointed to the role, stated that he’d rather use the SRD money to fund training and apprenticeship programmes. No details about what could actually replace the R350 grant have been shared – but we know that it does have a shelf-life.
“The National Treasury is working with the Presidency, the Department of Social Development, and other partners to consider various options for reducing the national poverty gap. This includes considering what might replace the R350 social relief of distress grant. However, all options also need to be considered with respect to their affordability.”
“What we are going to require to structure and change and make sure this economy can recover is mobilize all of South Africans to work together to ensure that this economy is brought into a better performance.”
