Urgent CALL for clarity on SASSA SRD change to income support

The long-talked about SASSA SRD change to income support will finally take place this year. That’s according to President Ramaphosa’s State of the Nation Address (SONA) this week anyway. However, the National Treasury previously confirmed that the R370 Social Relief of Distress grant will continue in its current form for another year, until March 2027.

Classified as a ‘temporary’ grant since the 2020 COVID pandemic, R35 billion is currently allocated to roughly 8-million beneficiaries per month. However, the Department of Social Development (DSD) recently appealed a High Court ruling that found several SRD grant regulations unlawful.

SASSA SRD CHANGE TO INCOME SUPPORT

Previously, Judge Twala ruled that the South African Social Security Agency and National Treasury were deliberately excluding millions of eligible SRD grant recipients to keep expenditure within budget. The Treasury’s reasoning was simply that it cannot afford to increase the grant and broaden eligibility within the current budget.

Nevertheless, President Ramaphosa did confirm this week at SONA that the SASSA SRD change to income support will take place in 2026. So, is it yet more pie-in-the-sky thinking from the president, like bullet trains and smart cities? Or will Finance Minister Enoch Godongwana have to make good on the Ramaphosa’s promise in the 2026 Budget Speech?

FISCUS CANNOT AFFORD IT

Unfortunately, it appears Minister Godongwana has lost the battle to implement higher taxes for the SASSA SRD change to income support. As far back as 2024, the National Treasury has argued a new revenue source or reprioritising of spending would be needed to afford the expanded social grant.

However, following the 2025 Budget debacle, experts believe the department’s options are severely limited. Previously, the Treasury said, criteria dependent, funding a SASSA SRD change to income support could cost the fiscus as much as R400 billion. That’s more than ten-times higher than the current ‘temporary’ SRD budget.

CONFUSION OVER SASSA SRD CHANGE TO INCOME SUPPORT

As such, Bank of America’s Tatonga Rusike says there’s very little likelihood of another major tax increase. And therefore little wiggle room for reallocating spending to the SASSA SRD change to income support. He says securing extra money for the grant was lost after the 2025 Budget had to be revised three times due to political infighting over proposed value-added tax (VAT) increases.

Surprisingly, core SASSA grants like Older Persons and Disability, still increased above inflation last year (4.8%). However, improved inflation in 2025 (3.2%) also lowers the bar for 2026 SASSA grant increases in the upcoming Budget Speech. Therefore, government’s only way to increase state revenue is through spending cuts or reallocation of existing budgets.

DELAY THE DECISION TILL 2027

However, Rusike says one way to clarify the SASSA SRD change to income support would be to simply delay the decision. SASSA SRD is currently slated to run out till March 2027 , therefore, government can reasonably delay the decision until 2027, after the next municipal elections. Increasing taxes in an election year will always be unpopular with voters.

And South Africa is currently on a positive fiscal trajectory, thanks to improvements in load-shedding, etc. However, the country’s economic recovery still remains fragile. We will bring you all the news from next week’s 2026 Budget Speech on Wednesday 25 February 2026. Where perhaps some clarity of the SASSA SRD change to income support will be forthcoming.

But what do you think? Is the SASSA SRD change to income support a good one for the country’s unemployed? Or will it breed yet more dependence on the state? Share your thoughts on the topic in the comments section below …