Targeting social assistance to those deemed most in need is often seen as a fair way to allocate resources. However, the narrow targeting of South Africa’s Social Relief of Distress (SRD) grant reveals significant flaws, resulting in the widespread exclusion of eligible individuals. This factsheet, published by the IEJ, delves into how and why these exclusions occur and their impact on vulnerable communities.
What is the SRD Grant?
The SRD grant, introduced in May 2020, is the only social assistance available to working-age able-bodied individuals. Initially valued at R350 (60% of the then-food poverty line), the grant’s eligibility criteria have since tightened, introducing a formal means test currently set below inflation-adjusted poverty thresholds.
Alarming Exclusion Rates
Research conducted by the IEJ uncovered an average monthly exclusion rate of 89.7% among eligible applicants surveyed. Key barriers include:
- Means testing flaws: Automated systems wrongly categorize household transfers, child support, or loans as income.
- Digital and linguistic challenges: Online applications in English exclude those without digital access or proficiency.
- Administrative failures: Approved grants frequently remain unpaid or delayed.
Vulnerable Groups Most at Risk
Those disproportionately excluded include women, rural residents, and individuals lacking formal identification or access to financial and digital services. Despite being the intended beneficiaries, these groups face significant hurdles due to systemic inequities.
A Call for Change
The IEJ advocates for a universal basic income grant to address the limitations and pitfalls of poverty targeting systems. Policy recommendations include:
- Eliminating restrictive eligibility criteria.
- Improving transparency in verification processes.
- Offering non-digital application alternatives.
Learn More
Explore the full findings and recommendations in the IEJ’s UBIG Factsheet 12.
Other factsheets in the series include:
- Why does South Africa need a Universal Basic Income Guarantee?
- No one left behind: Why universal basic income makes more sense than targeted grants
- Jobs versus Grants: Are employment and basic income a policy trade-off?
- How a UBIG can support healthier kids, happier adults, and lifelong learning
- How a UBIG can advance gender justice and social cohesion
- Not just a handout: How a UBIG gives people the power to prosper
- “But how will we pay for it?” Financing a UBIG
- Modelling fiscal pathways to a basic income
- Work-seeking Conditionality is Just Bad Policy: Why a basic income should have no strings attached
- A True Safety Net: How a UBIG Can Support a Just Energy Transition
- Priority number one: How a UBIG can help defeat hunger
- The pitfalls of poverty targeting: The drivers and impacts of widespread exclusion from the SRD grant