South Africa is full of myths about Universal Basic Income, that it makes people lazy, that it’s unaffordable, or that it’s no different from existing grants. The truth is very different.
UBI is not charity, it’s justice.
Let’s explore some common myths and the facts that dispel them
MYTH 1: “Universal Basic Income will make people lazy; they’ll stop looking for work.”
FACT: Universal Basic Income does not make people lazy; it gives them the freedom to seek decent, meaningful work.
More than half of South Africa’s youth don’t have enough money to cover the costs of just looking for work.
Most people want to contribute. Global studies show that basic income helps people find jobs, start businesses, study, and escape exploitation. Poverty kills potential, UBI unlocks it.
Read more on IEJ’s Fact Sheet #11: Why work-seeking conditions don’t work
MYTH 2: “Only the poor should get income support. Universal Basic Income is a waste on people who don’t need it.”
FACT: Targeted systems almost always exclude the very people who need support the most.
Means-testing and digital filters create administrative burdens and high exclusion errors. Universality is simpler, fairer, more cost-effective in the long run, and avoids the high error rates of current systems.
Basic income should be financed by the rich, but available to all.
See Fact Sheet #12: The problem with poverty targeting
MYTH 3: “South Africa cannot afford a UBI.”
FACT: We can afford Universal Basic Income, we actually cannot afford not to! At R1 634/month (the current food poverty line), the gross cost would be around R342 billion. But the net cost is far lower after tax returns and economic growth. Phased in and funded through fair taxes, UBI is achievable and urgent.
Exclusion, poverty, and unemployment are already costing us more.
Learn how South Africa can pay for it in Fact Sheet #6
MYTH 4: “People already get the SRD grant, why do we need UBI?”
FACT: The SRD grant is not universal and it’s failing millions. R370 a month is nowhere near enough to survive.
Only about one in two people who need assistance receive the SRD grant, and nine out of ten exclusions are wrong. UBI removes red tape and ensures no one is left behind.
A UBI would start at a level that meets everyone’s most basic, essential needs. For example, a decent UBI could begin at around R796 per month (the current national food-poverty line), the amount people need just to afford food, and would increase over time as the cost of living and food prices rise. (Learn more >>LINK TO SIYANDA VIDEO BLOG)
See Fact Sheet #12 on exclusion from SRD
MYTH 5: “UBI will hurt the economy.”
FACT: UBI will boost the economy.
It unlocks local demand, helps people invest in small businesses, improves food security, and increases resilience in times of crisis.
To learn about what UBI means for the economy, see Fact Sheet #7
MYTH 6: “UBI is just another social grant.”
FACT: UBI is a new paradigm, a new social contract.
It’s not about handouts or welfare. It’s about sharing South Africa’s wealth more fairly, recognising unpaid work, and ensuring that everyone has access to the basics, no matter who they are.