20 years of SASSA: How the SRD grant became a lifeline for millions
Research suggests the grant does not discourage unemployed people from looking for work
On 21 April 2020, President Cyril Ramaphosa announced the Social Relief of Distress (SRD) grant as part of a R500-billion response to the COVID-19 pandemic. Crafted to support working-age adults without employment, the grant initially targeted eight million people for six months. However, SASSA, the South African Social Security Agency, faced significant challenges in processing applications and payments.
The government's stringent verification process, which cross-checked applicants against multiple databases, caused confusion. Many rejected applications stemmed from incorrect matches against the Unemployment Insurance Fund, which led to grievances among beneficiaries. Those who received the grant often collected it at post offices, enduring long queues and resorting to bribery in some cases.
Despite the challenges, the grant survived the end of the state of disaster, legal challenges, and a significant fraud issue. SASSA reinstated the grant in July 2021, covering unemployed caregivers as well. A means test was introduced in April 2022, disqualifying applicants earning R350 or more per month.
By mid-2022, only 5.2-million people qualified for the grant, with payments resuming only after SASSA procured banking services for the necessary checks. The grant endured the #PayTheGrants campaign, which criticized the technical delays as "a deliberate act of cruelty."
In October 2022, the income threshold was raised to R624, addressing food poverty concerns. However, the grant attracted fraud due to weak online application security. In October 2024, researchers from the University of Cape Town discovered that fraudulent applications were being made using the ID numbers of individuals who recently turned 18. The court ruled several regulations unconstitutional, including the income threshold and the grant amount, and ordered the government to adjust them accordingly.
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