The Universal Basic Income Coalition (UBIC) welcomes the President’s continued commitment to the Social Relief of Distress (SRD) grant, as reaffirmed in his 2025 State of the Nation Address (SONA). We acknowledge his recognition of the crucial role the grant plays in alleviating the worst effects of poverty for poor, working-age individuals. We also note his restatement of the government’s longstanding policy commitment that the SRD grant will serve as the basis for a system of basic income support.
We hope to see this commitment reflected in the budget, particularly in light of the recent High Court ruling, which confirmed what we have long argued: that the current administration of the SRD grant unfairly excludes millions through various procedural barriers and an unreasonably low means-test threshold. The court also affirmed that the grant’s value—already inadequate at its introduction—has been severely eroded over time due to inflation.
For National Treasury to honour this commitment, we expect to see an increase in the allocation to the grant, reversing the pattern of declining budgets that are disconnected from expert estimates of the size of the eligible population. This increase in allocation can and should happen without an increase in Value Added Tax (VAT). Raising VAT would be a regressive, anti-poor measure that would ultimately undermine the grant’s stimulus effects. This year’s budget must allow for:
- The expansion of coverage to include all those previously unfairly excluded.
- The increase in the grant’s value to restore its purchasing power and reverse years of retrogression.
Without these adjustments, the SRD grant will continue to fall short of providing meaningful relief to those who need it most.
We also expect that, following the budget, the Department of Social Development (DSD) will fulfil its role in honouring this commitment by publishing the long-awaited policy on basic income and opening it for public discussion. Additionally, we call for the tabling of a clear roadmap, with defined milestones and timeframes, to guide the transition of the SRD grant into a comprehensive system of basic income support.
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For media enquiries please contact:
- Oliver Meth – Black Sash | 068 352 9045 | oliver@blacksash.org.za
- Bukelwa Hans – Grape | 082 651 5070 | stukie@iafrica.com
- Dalli Weyers – IEJ | 082 460 2093 | dalli.weyers@iej.org.za
UBIC is comprised of the following organisations:
- Alternative Information and Development Centre (AIDC)
- Basic Income Earth Network (BIEN) – Africa UBI Observatory
- Black Sash
- Children’s Institute, UCT
- Congress of South African Trade Unions (COSATU)
- The Family Caregiving Programme
- Global Reformed Platforms for Engagement (GRAPE )
- Institute for Economic Justice (IEJ)
- #PayTheGrants
- RightfulShare An Income Movement
- Women on Farms Project
- Youth Lab
Amaarah is a Junior Programme Officer in the Rethinking Economics for Africa project. She is currently studying towards her Masters in Applied Development Economics at Wits University.
Dr James Musonda is the Senior Researcher on the Just Energy Transition at the IEJ. He is also the Principal Investigator for the Just Energy Transition: Localisation, Decent Work, SMMEs, and Sustainable Livelihoods project, covering South Africa, Ghana, and Kenya.
Dr Basani Baloyi is a Co-Programme Director at the IEJ. She is a feminist, development economist and activist. She gained her research experience while working on industrial policy issues in academia, at the Centre For Competition, Regulation and Economic Development (CCRED) and Corporate Strategy and Industrial Development (CSID) Unit.
Dr Andrew Bennie is Senior Researcher in Climate Policy and Food Systems at the IEJ. He has extensive background in academic and civil society research, organising, and activism. Andrew has an MA in Development and Environmental Sociology, and a PhD in Sociology on food politics, the agrarian question, and collective action in South Africa, both from the University of the Witwatersrand.
Juhi holds a Bachelor of Arts degree in International Relations and Sociology from Wits University and an Honours degree in Development Studies from the University of Cape Town. Her current research focus is on social care regimes in the South African context, with a particular focus on state responses to Early Childhood Development and Long-Term Care for older persons during the COVID-19 pandemic. Her other research areas include feminist economics, worlds of work and the care economy.
Bandile Ngidi is the Programme Officer for Rethinking Economics for Africa. Bandile has previously worked at the National Minimum Wage Research Initiative and Oxfam South Africa. He holds a Masters in Development Theory and Policy from Wits University. He joined the IEJ in August 2018. Bandile is currently working on incubating the Rethinking Economics for Africa movement (working with students, academics and broader civil society).
Liso Mdutyana has a BCom in Philosophy and Economics, an Honours in Applied Development Economics, and a Masters in Applied Development Economics from Wits University. His areas of interest include political economy, labour markets, technology and work, and industrial policy. Through his work Liso aims to show the possibility and necessity of economic development that prioritises human wellbeing for everyone.
Joan Stott holds a Bachelor of Business Science in Economics and a Master’s in Economics from Rhodes University. She brings to the IEJ a wealth of experience in public finance management, policy development, institutional capacity-building, and advancing socioeconomic and fiscal justice.
Siyanda Baduza is a Junior Basic Income Researcher at IEJ. He holds a BSc in Economics and Mathematics, an Honours degree in Applied Development Economics, and is currently completing a Master’s degree in Applied Development Economics at the University of the Witwatersrand. Siyanda’s research focuses on the impacts of social grants on wellbeing, with a particular focus on the gendered dynamics of this impact. His interests include applied micro-economics, policy impact evaluation, labour markets, gender economics, and political economy. He is passionate about translating economic research into impactful policy.
Shikwane is a Junior Programme Officer at IEJ focusing on civil society support and global governance in the G20. He has a background in legal compliance, IT contracting and student activism. He holds degrees in Political Studies and International Relations, as well as an LLB, from the University of the Witwatersrand.
Dr Tsega is a Senior Researcher focusing on Women’s Economic Empowerment within the G20. She examines gender equity in economic policy, with expertise in food systems and small enterprise development. She holds a PhD in development studies from the University of the Western Cape, an MA in Development Economics, and degrees in Development Studies and Economics from UNISA and Addis Ababa University.
Nerissa is a G20 Junior Researcher at IEJ, focusing on advancing civil society priorities within the G20 framework. She bridges data, research, and policy to advance inclusive economic frameworks. She is completing a Master’s in Data Science (e-Science) at the University of the Witwatersrand, and holds Honours and Bachelor’s Degrees in International Relations with distinction. She has worked as a Research Fellow at SAIIA and a Visiting Research Fellow at Ipea in Brazil.
Dr Mzwanele is a Senior Researcher supporting South Africa’s G20 Sherpa with policy research. He holds a PhD in Economics from the University of Birmingham and an MSc from the University of the Witwatersrand. His work covers open macroeconomics, trade, finance, and higher education policy, and he has published widely on inequality, unemployment, household debt and higher education curriculum reform.
Kamal is the Project Lead for IEJ’s G20 work, focusing on sovereign debt and development finance. He holds a BComm (Hons) in Applied Development Economics from the University of the Witwatersrand and an Erasmus Mundus Joint Masters in Economic Policies for the Global Transition. He has worked with SCIS, UNCTAD and co-founded Rethinking Economics for Africa.