The Universal Basic Income Coalition (UBIC) has made a submission to Parliament’s Finance Committees on the 2026 Revised Fiscal Framework and Revenue Proposals, raising concerns about proposed cuts to social grants in the 2026 Medium-Term Budget Policy Statement (MTBPS).
The submission warns that the MTBPS proposes R13 billion in social grant cuts over the medium term, affecting the Social Relief of Distress (SRD) grant, Child Support Grant, Older Person’s Grant and Disability Grant. UBIC argues that these cuts are being presented as savings from fraud reduction, when the available evidence points instead to administrative barriers, verification failures and the exclusion of eligible beneficiaries.
The submission highlights how more than a million approved SRD grant beneficiaries have gone unpaid, contributing to billions of rands in underspending. Online-only biometric verification requirements, including access to a smartphone, reliable internet and the phone number used to apply, have prevented eligible people from receiving their grants. Meanwhile, 95% of cancellations of longer-standing grants were attributed to failures to complete reviews, rather than proven fraud.
UBIC also raises concerns about the SRD grant’s inadequate value and restrictive means test. At R370 per month, the grant falls far below the food poverty line of R868, while the R624 monthly income threshold risks penalising people who earn small or irregular incomes as they seek employment. The coalition further warns that cutting social assistance undermines efforts to address gender-based violence and child stunting, given the important role grants play in supporting women’s economic security and children’s nutrition.
To address these challenges, UBIC calls on Parliament to investigate the proposed grant savings, restore regular SASSA reporting, improve transparency in budget decisions, and reconsider the SRD grant’s value and means test. It also recommends funding the SRD through the main budget until its successor is established, ensuring that proposed improvements are properly costed, and making employment and training linkages voluntary rather than conditions for accessing income support.
The submission argues that social grant policy must prioritise people’s rights, needs and access to income support, rather than treating the exclusion of vulnerable beneficiaries as a budgetary saving. UBIC calls for transparent, evidence-based budgeting that protects social assistance while supporting access to employment and sustainable livelihoods.