Cape Town – Government has extended the Covid-19 Social Relief of Distress Grant (SRD Grant) until March 2025 while it considers social security policy reforms and a funding model.
The grant was initially introduced to support low-income individuals affected by lockdowns during the Covid-19 pandemic.
Finance Minister Enoch Godongwana announced an allocation of R34 billion to extend the grant by another year.
A comprehensive review of the entire social grant system is underway, and the government is proposing to provide funding for the grant in the 2024/25 fiscal framework.
“Over the medium term, a provisional allocation is retained while a comprehensive review of the entire social grant system is finalised. The 2023 Budget indicated that the Covid-19 Social Relief of Distress grant was only funded until March 2024.
“Government proposes that the fiscal framework make provision for funding for the grant for 2024/25. Beyond this, a comprehensive review of the entire social grant system by the Department of Social Development and the National Treasury is required,” Godongwana said while delivering the Medium Term Budget Policy Statement (MTBPS) to Parliament on Wednesday.
The MTBPS highlighted that a significant portion of the budget is allocated to social protection transfers, including old age grants, child support grants, disability grants, and the Covid-19 relief grant.
This spending is expected to increase over the years, potentially requiring additional sources of funding.
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Compiled by Betha Madhomu
