The Social Relief of Distress (SRD) grant, introduced during the COVID-19 pandemic, remains a critical source of financial support for millions of South Africans. However, the recent increase from R350 to R370, effective April 2025, has sparked widespread criticism. Advocacy groups have taken the issue to court, arguing that the modest R20 increment is insufficient to address rising living costs and inflation.
This article examines the history of the SRD grant, its current challenges, and the potential implications of the ongoing legal battle.
R370 SRD Grant
| Aspect | Details |
|---|---|
| Grant Amount | Increased to R370 (from R350) in April 2025 |
| Eligibility | Monthly income below R624; application required via SASSA’s online platform |
| Reason for Controversy | Advocacy groups argue the increase is inadequate amid high inflation |
| Legal Challenge | Filed by Institute for Economic Justice (#PayTheGrants) |
Historical Context
Introduced in 2020 as a temporary measure during the pandemic, the SRD grant provided a financial cushion to unemployed and low-income individuals affected by the economic downturn. Initially set at R350 per month, the grant was meant to cover basic needs but has since faced criticism for its limited scope.
Despite its temporary nature, the grant was extended multiple times due to ongoing economic challenges, signaling its critical role in supporting vulnerable citizens.
Rising Costs of Living
The R20 increase comes at a time when inflation is eroding purchasing power, leaving recipients struggling to make ends meet.
Inflation’s Impact
According to Statistics South Africa, inflation reached 7% in early 2025, significantly increasing the cost of essentials like food and utilities.
| Expense Category | Average Monthly Cost |
|---|---|
| Basic Food Items | R1,335 |
| Utilities (Electricity, Water) | R200 |
| Transportation | R150 |
| Essential Toiletries | R70 |
| Total | R1,755 |
The R370 grant covers only a fraction of these expenses, highlighting the disparity between the support provided and the actual cost of living.
Advocacy Groups Challenge
Two prominent organizations, Institute for Economic Justice (IEJ) and #PayTheGrants, filed a legal challenge against the government in October 2025, calling for:
- A Substantial Increase: Advocates suggest a baseline of R624 per month to align with minimum survival needs.
- Revised Eligibility Criteria: Expanding access to include those marginally above the income threshold.
- Improved Access: Addressing barriers posed by the online application system, which excludes many who lack internet access or digital skills.
Constitutional Argument
Advocates argue that the current grant fails to meet South Africa’s constitutional commitment to provide adequate social support for those unable to sustain themselves.
Government’s Position
The South African government, led by the National Treasury, defends the modest increase, citing:
- Fiscal Constraints: Social grants already cost R2.5 billion per month, and further increases could strain resources.
- Sustainability: Officials argue that raising the grant without economic growth risks destabilizing the budget.
While acknowledging the importance of social support, the government emphasizes the need to balance immediate assistance with long-term fiscal health.
Potential Outcomes
The court’s decision could reshape the future of social assistance in South Africa. Possible outcomes include:
| Scenario | Implications |
|---|---|
| Grant Increase Approved | Higher monthly payments; greater support for beneficiaries |
| Eligibility Criteria Expanded | More individuals qualify for the grant |
| Challenge Dismissed | R370 remains unchanged; focus shifts to other solutions like job creation |
Insights from Beneficiaries
For many recipients, the SRD grant is their only source of income. Beneficiaries report having to make difficult choices, such as skipping meals or reducing electricity usage, to stretch their limited funds.
A recipient stated:
“The R20 increase barely covers the cost of a loaf of bread. It’s not enough to make any real difference in daily life.”
These stories underscore the urgent need for a more robust safety net that can address basic living costs.
Proposed Alternative Solutions
Advocacy groups and economists have proposed alternative measures to enhance the grant’s effectiveness:
- Increased Grant Amount: A baseline of R624 per month to cover basic needs.
- Job Creation Programs: Reducing dependency on grants by expanding employment opportunities.
- Revised Budget Allocation: Redirecting funds from less critical areas to social support programs.
The modest increase in the SRD grant to R370 has reignited debates about social welfare in South Africa. While the government cites fiscal constraints, advocacy groups argue that the grant is insufficient to meet basic needs, particularly in the face of rising inflation.
The ongoing legal challenge could set a precedent for future social assistance policies, shaping how South Africa addresses poverty and inequality. For the millions relying on the SRD grant, the outcome represents more than a legal decision—it’s a question of survival and dignity.
FAQs
What is the SRD grant?
A temporary financial relief measure for unemployed and low-income South Africans.
Why is the R20 increase controversial?
Advocates argue it’s inadequate to cover inflation and basic needs.
What is the current SRD grant amount?
The grant was increased to R370 in April 2025.
What are the eligibility criteria?
Income below R624 per month; application via SASSA required.
What are the advocacy groups’ demands?
Increase the grant to R624 and revise eligibility criteria.
