This civil society briefing examines the future of South Africa’s Social Relief of Distress (SRD) grant and the prospects for introducing a Universal Basic Income Guarantee (UBIG). It argues that income support should move beyond temporary relief towards a permanent, universal system that strengthens social protection, reduces poverty, and advances economic justice.
The future of the SRD grant
The briefing reviews the evolution of the SRD grant since its introduction in 2020, highlighting concerns about restrictive eligibility rules, low income thresholds, digital-only application processes, and administrative barriers that limited access for millions of eligible people. It argues that these measures resulted in significant underspending and left many vulnerable households without support.
Evaluating proposals for reform
The document assesses proposals from National Treasury, the Department of Social Development, and the Presidency regarding the future of income support. It raises concerns that highly targeted grant models could increase administrative complexity and exclude many of the people most in need. In contrast, it argues that a Universal Basic Income Guarantee offers a more effective and equitable solution.
The case for a Universal Basic Income Guarantee
The briefing contends that a universal grant would reduce poverty more effectively than narrowly targeted programmes while simplifying administration and strengthening household resilience. It highlights the wider developmental benefits of unconditional income support, including improved food security, greater economic participation, and stronger local economies.
Financing and policy direction
The paper argues that financing a UBIG is achievable through progressive revenue measures rather than regressive taxation. It highlights options such as wealth taxes and broader tax reforms while criticising proposals that rely on VAT increases or overlook available fiscal resources. The document also references ANC policy resolutions supporting a universal income guarantee for working-age adults.
Conclusion
The briefing concludes that South Africa should build on the SRD grant by moving towards a Universal Basic Income Guarantee supported by progressive financing and comprehensive social protection reforms. It calls for greater transparency, public participation, and collaboration between government and civil society to advance a rights-based income support system.