Calls for an increase in the R370 Social Relief of Distress grant amid rising living costs
The R370 Social Relief of Distress grant, initially set during the Covid-19 pandemic, has barely increased, leaving many beneficiaries struggling to survive.
Calls have risen for raising the R370 Social Relief of Distress grant amid increasing living costs. Since its introduction during the Covid-19 pandemic at R350, the grant has only risen by R20 in April 2024. Beneficiaries find it hard to make ends meet on R370 per month. A beautician professional, who uses the grant to purchase supplies for small beauty gigs, shared her struggles.
Another recipient, prioritizing pensioners, argues that funds should go towards them instead. Treasury warns that increasing the grant could cost the State nearly R100 billion. Economists urge the government to balance supporting unemployed individuals with the country's fiscal capacity. The GOOD Party criticizes Treasury's decision to appeal a Pretoria High Court ruling on the grant, calling it a "disgraceful denial of the State’s constitutional obligations".
The court's order requires progressive increases in the grant value and income threshold, factoring in inflation and cost of living. Economist Ulrich Joubert cautions that once a social grant is introduced, it's challenging to withdraw, bearing ongoing pressure to raise payments. He emphasizes that expanding the programme must be weighed against South Africa's limited tax base and fiscal pressures.
Economist Dawie Roodt agrees that significantly raising the grant could strain the fiscus. The GOOD Party rejects the affordability claim, suggesting zero-based budgeting and eliminating waste, corruption, and unnecessary spending could generate additional funds. The party advocates for the SRD to become a permanent Basic Income Grant of at least R999 per month for unemployed adults aged 18 to 60.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
