Basic Income Grant – will it replace the SRD Grant?
Most South Africans cannot afford daily essentials such as basic foods, safe and sufficient housing, sanitation, and the means to find work. In fact, over half the South African population are surviving on less than R1 335 per month*, and as such, cannot afford to properly feed themselves or their family.
On the other side, 10% of the countries population owns 90% of the country’s wealth! This inequality we see in the country will only lead to the gap between the poor and the rich getting larger, and ultimately many not being able to sustain their life.
* (R1 335 is the Upper-bound poverty line (UBPL), per person per month, according to 2021 stats.)
What is a Basic Income Grant?
A basic income grant (BIG) is a financial commitment made by a countries government, to ensure that all citizen receive a minimum level of income to fulfill their basic needs. This is paid to citizens in need through a regular grant or cash transfer. It’s important to note that not all basic income grants are the same, with a major difference being if it is universal (available to all) or targeted (available to a specific group).
What is the difference between a Basic Income Grant and a Universal Basic Income Grant?
The Basic Income Grant (BIG) is a form of social assistance, and is different from other social grants. This Grant is targeted at individuals who can not access employment/ make a sustainable income owing to structural unemployment. Structural unemployment refers to instances where there is a valid obstacle for a certain group of people, preventing them from earning an income.
The BIG is targeted at adults (between the ages of 18 and 59 years old), who are able-bodied but cannot gain employment (for a valid reason).
The Universal Basic Income Grant (UBIG), however, is offered to all citizens (i.e. old and young, able-bodied and living with disabilities, employed and unemployed). The UBIG’s main goal is to ensure all people are placed above the poverty line whilst replacing other social grant programmes that are currently available.
What plans does South Africa have in place for the Basic Income Grant?
The Department of Social Development (DSD) has various proposals to execute the basic income grant. Although a final decision has not been made yet, the Department has considered utilizing the R350 relief grant as the starting point for a BIG.
To date, a draft policy for basic income support for citizens (aged between 18 and 59 years old) has been submitted for consideration, to state technical working committees. However, no final design has been made just yet.
In April 2023, it was reported that officials from the Department of Social Development (DSD) had a briefing with the Select Committee on Health and Social Services, discussing the department’s yearly performance plan.
Linton Mchunu, the DSD acting director-general has stated that the basic income support grant is one of the top anti-poverty strategies. It was stated that the DSD has engaged in substantial research and consultations, resulting in policy proposals to be submitted for consideration by the Cabinet. Mchunu also stated that the DSD will be first targeting individuals between the ages of 18 and 35 years old, and later, other age groups. Mchunu finished their statement saying that the DSD has a number of proposals that are still up for conclusion.
Will the BIG replace the R350 SRD Grant?
The Covid-19 Social Relief of Distress (SRD) Grant is a temporary measure in place to aid people with financial assistance. As such, able-bodied people between the ages of 18 and 59 years old can access this financial aid, however, the grant does have many limitations.
The longevity of the SRD Grant, or its replacement when the temporary arrangement terminates, has not yet been decided.
Minister Lindiwe Zulu, the Social Development Minister has stated in their response to a written parliamentary reply that although the Department appreciated the grant extension to March 2024, it would still remain a temporary measure.
Read more about the different types of SASSA grants here:
SRD R350 Grant Care Dependency Grant Child Support Grant Foster Child Grant Disability Grant Older Persons Grant Grant-In-Aid War Veterans Grant
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