SRD Grant Extension Until 2027? Know the Latest Official Update from SASSA & the Government

The Social Relief of Distress (SRD) grant has provided critical financial support to millions of South Africans since its introduction in 2020.

Initially designed as a temporary measure to assist unemployed individuals during the COVID-19 pandemic, discussions are now underway to extend the grant until March 2027.

But will the extension be approved? How will it be funded? Who qualifies? Here’s everything you need to know about the potential SRD grant extension and what it could mean for South Africans.

Grant

The proposed SRD grant extension would ensure continued financial support for those in need.

Aspect	Details
Proposed Extension	Until March 2027
Current Grant Amount	R370 per month
Number of Beneficiaries	8.5 million
Funding Strategy	VAT increase & budget reallocations
Decision Timeline	By March 2025
Official Source	National Treasury Budget Documents

This proposal has sparked intense debate, particularly over its funding and long-term sustainability.

Purpose

The SRD grant was originally introduced in May 2020 to support unemployed South Africans facing financial hardship. Over time, it has helped nearly 8.5 million beneficiaries meet basic needs, including food, transport, and essential expenses.

Given South Africa’s high unemployment rate (32%), the government believes an extension could:

• Provide financial relief – Preventing millions from falling into extreme poverty.
• Boost economic stability – Increasing consumer spending and stimulating local businesses.
• Enhance social welfare – Reducing social unrest and inequality.

However, funding the extension remains a major challenge.

Extended Until 2027?

The National Treasury has suggested extending the SRD grant until March 2027 to help vulnerable citizens during South Africa’s ongoing economic struggles.

However, the proposal is still under discussion and requires parliamentary approval before becoming official.

Official Statements

• SASSA’s Perspective: The agency has confirmed it is prepared to continue managing the SRD grant if the extension is approved.
• National Treasury’s Position: The Treasury has warned that extending the grant would require additional funding, possibly through higher taxes or budget cuts.

Grant Be Funded

Extending the SRD grant will require an estimated R30 billion per year, and the government is investigating several options to secure funding:

VAT Increase

A proposed VAT increase from 15% to 16% could generate billions in additional revenue. However, this would impact all South Africans, raising the cost of living—particularly for low-income households.

Budget Reallocations

Funds may be shifted from other government programs, but this could lead to reduced services in areas like healthcare, education, and infrastructure.

Debt Financing

The government may borrow money to cover the costs, but this could increase national debt and affect the country’s financial stability.

Public Reaction

The proposed VAT increase has faced backlash, with critics arguing that it would burden taxpayers while benefiting only a portion of the population. Supporters, however, believe it is necessary to sustain social welfare programs.

Eligibility

To qualify for the SRD grant, applicants must meet these criteria:

• Age: 18 to 59 years old
• Employment: Unemployed and not receiving other grants or UIF benefits
• Income Threshold: Monthly income must not exceed R624
• Residency: South African citizen, permanent resident, or refugee
• Bank Account: Must have an active account for direct deposits

How to Apply

Eligible individuals can apply through multiple channels:

• Online: Visit SASSA SRD Website and complete the application.
• WhatsApp: Send a message to 082 046 8553 and follow the instructions.
• USSD Code: Dial 1347737# from a registered mobile number.

Once approved, payments are made monthly via bank deposit, SASSA card, or mobile wallets.

Impacts

• Poverty Alleviation – Helping millions afford basic necessities.
• Economic Stimulus – Increased consumer spending supports local businesses.
• Social Stability – Reduces crime and unrest linked to poverty.

Challenges

• Funding Constraints – The cost may force budget cuts in critical sectors.
• Dependency Concerns – Some fear that long-term reliance on grants could discourage employment.

The final decision on the SRD grant extension is expected by March 2025. If approved, it will continue supporting millions, but the funding debate will likely persist.

For updates, visit www.sassa.gov.za.

FAQs