Latest News: SASSA R350 Grant Extended Until March 2025

On November 2, 2023, South Africa’s Finance Minister Enoch Godongwana announced the extension of the SASSA SRD R350 grant until March 2025. Previously, the grant extension was set to end in March 2024. Enoch Godongwana announced the SASSA R350 grant extended in the National Treasury’s Medium-Term Budget Policy (MTBP) on November 2, 2023.

This recent SRD grant extension allows the beneficiaries to collect their R350 grant until March 2025 while it considers social security policy reforms and a funding model. SRD grant is extended because no policy decisions have yet been made on the grant and no funding solution has been agreed to.

Why SRD R350 Grant Was Initiated?

The SRD R350 grant, also known as the Social Relief of Distress (SRD) grant was initiated during COVID-19 in 2020. The pandemic hit hard to everyone across the globe and South Africa was no exception. With the country under lockdown, many businesses were closed and unemployment increased. Many citizens were struggling to meet their basic needs because of this economic crisis.

To tackle this financial hardship, the South African government rolled out the Social Relief of Distress (SRD) R350 grant. The main aim of this grant was to provide financial assistance to millions of South African citizens who lost their jobs and were unable to meet their basic needs. This grant was a temporary solution and meant to stop at the end of the pandemic.

Though COVID-19 is over, this grant has continuously been extended to provide post-pandemic financial relief. Millions of people are dependent on this social grant as it provides essential financial assistance for food and, basic necessities. The extension of this grant until March 2025 adds help to this group of people.

COVID-19 Special SASSA R350 Grant Extended Until March 2025

Initially, this grant was meant to be paid only for the COVID-19 pandemic. But to date, this grant has been extended multiple times. No policy decision has been made yet on the grant. That’s why Finance Minister Enoch Godongwana announced the extension of the grant for a further year until March 2025 during the National Treasury’s Medium-Term Budget Policy (MTBP).

Enoch Godongwana announced the allocation of R34 billion to extend this grant till March 2025. The Minister said that the government does not have any replacement or funding to extend this grant further after 2025. However, we are finding the sources to fund this SRD grant even after March 2025.

In his speech, Enoch Godongwana added that the Department of Social Development and the National Treasury should conduct a comprehensive review before making the grant available to beneficiaries after March 2024. He said:

“Government proposes that the fiscal framework make provision for funding for the grant for 2024/25. Beyond this, a comprehensive review of the entire social grant system by the Department of Social Development and the National Treasury is required”

Enoch Godongwana

As per the Medium Term Expenditure Framework (MTEF), 61% of non-interest spending will go to the social wage throughout 2024. It includes spending on health, social protection, transport, employment, housing, education, and local amenities. He said:

“Of this amount, R945.9 billion will be spent on social protection transfers, including the old age grant, the child support grant, the disability grant, and the COVID-19 social relief of distress grant. South Africa’s social protection expenditure program, measured as a percentage of gross domestic product (GDP), is one of the largest among developing countries”

Enoch Godongwana

The result of the grant extension is still pending by the National Treasury and the Department of Social Development. But one thing is confirmed the SRD R350 grant will be paid until March 2025.

What Are the Government’s Future Plans for SRD Grant

President Cyril Ramaphosa also said that the SRD grant served as a lifeline for millions of South Africans and ahead of the MTBPS, he hinted that the grant would be extended. As per 2019 MTBPS, social assistance beneficiaries were projected to increase to 22.5 million and the spending for these grants amounts to 3% of GDP annually. SRD R350 is excluded as it will require a constant source of funding if it is paid permanently.

A comprehensive review of the entire social grant system needs to be done to create future plans for the grants. Referring to the future of the SRD R350 grant, Enoch Godongwana said:

“This is in line with current grants spending, excluding the temporary grant. If that or a similar type of new grant is made permanent, beneficiaries are projected to expand from 27.3 million in 2023/24 to 40.4 million in 2040/41, which will cost 3.8 % of GDP in 2040/41 and require a corresponding permanent source of funding, such as additional revenue measures,”

Enoch Godongwana

From these statements, we can conclude that the government is aiming to extend the social grants and continue them. The only thing they need is to create a permanent funding source for these grants.

Will the SASSA SRD R350 Grant Amount Also Increase?

Though the SRD grant is extended for another year, the grant amount remains the same. The grant amount remains at R350 which is the same from the start. The government has not given any indication to increase the grant amount for now. The news that the R350 grant amount will be increased is circulating on social media. This is completely false and fake news.

Department of Social Development has already requested the National Treasury multiple times to increase the SRD grant amount, but it was not considered because of fiscal constraints. Deputy Director-General of the Social Development Department Brenda Sibeko and Social Development Minister Lindiwe Zulu, both have expressed their desire to increase the grant amount.

However, because of fiscal constraints, this request is not considered and the grant amount remains at R350. All other grant amounts excluding the SRD grant are increased from October 1, 2023. Please be aware of the fraudsters and never share your details with anyone to avoid any loss.

Your Responsibility As Grant Holder

South Africa is a developing country and many of its citizens are unable to fulfill their basic needs. The government is doing its best to support the citizens in fighting the battle against poverty. But the people who already have better financial support are also applying for these grants and the actual deserving citizens are not getting the grants.

As a responsible citizen of the country, if you already have good income sources and assets, and don’t need the grant then don’t apply for it. Let the people who are deserving receive these grants. If you are an existing R350 grant recipient but no longer need financial assistance from the grant, cancel your grant and make it available to the needy.

This will help the government to fund this grant and extend it further, or make it permanent just like other social grants.

FAQs

Yes, the news is true. The Finance Minister announced the extension of the SASSA SRD grant till March 2025 during the National Treasury’s Medium-Term Budget Policy (MTBP).

There is no increase in the SRD grant amount. It remains at R350. The grant amount has not increased yet, it remains constant.

There is no indication from the government to extend the SRD grant beyond 2025 as there is no permanent source of funding for this grant.

Conclusion

The special COVID-19 SASSA SRD Grant extended by Finance Minister Enoch Godongwana during the National Treasury’s Medium-Term Budget Policy (MTBP). The Finance Minister allocated a budget of R34 billion for the extension of social grants, specifically the SRD grant. The grant is not yet made permanent and it can’t be extended further because of not having a permanent funding source.

If you qualify for the SRD grant but you are not receiving it, the applications are still open for all citizens. You can apply for the grant with your correct details.