Social Grants Increased in 2025 Budget: SRD Grant Extended but Not Adjusted

The South African government has announced increases to all permanent social grants in the 2025/26 financial year, reaffirming its commitment to social protection amid ongoing economic pressures. According to the 2025 Budget Overview released by the National Treasury on Wednesday, these increases will not be impacted by the re-tabled budget and are set to benefit millions of South Africans who rely on state support.

However, the Social Relief of Distress (SRD) grant, introduced during the COVID-19 pandemic, will not see an increase but will be extended until 31 March 2026. This continuation underscores the government’s recognition of the ongoing financial hardship faced by millions, although concerns remain about the grant's stagnant value.

Details of Social Grant Increases

From April 2025, recipients of the country’s primary social grants can expect the following increases:

• Old Age Grant: Increases from R2,185 to R2,315

• War Veterans Grant: Increases from R2,205 to R2,335

• Disability Grant: Increases from R2,185 to R2,315

• Care Dependency Grant: Increases from R2,185 to R2,315

• Foster Care Grant: Rises from R1,180 to R1,250

• Child Support Grant: Increases from R530 to R560

• Grant-in-Aid: Also increases from R530 to R560

These adjustments reflect a government strategy aimed at cushioning vulnerable populations against the high cost of living, particularly in light of rising food and transport prices. The additional R1.6 billion allocated to the social grants budget for 2025/26 demonstrates fiscal prioritization despite broader budget constraints.

SRD Grant Extended But Not Increased

While the R370 per month SRD grant remains unchanged, its extension has been welcomed by advocacy groups, who had warned that its removal would leave millions without any form of income support. R35.2 billion has been earmarked to sustain the grant through March 2026, including associated administrative costs.

Originally introduced in 2020 during the height of the COVID-19 pandemic, the SRD grant was designed as a temporary measure to provide relief to unemployed individuals not receiving any other form of social support. Over the years, it has become a lifeline for over 7 million South Africans.

Despite its importance, the value of the SRD grant has been criticized for not keeping up with inflation. Many economists and social policy advocates have called for its increase or replacement with a more sustainable income support mechanism.

Job-Seeker Allowance Under Consideration

In his Budget Speech delivered in Parliament, Finance Minister Enoch Godongwana emphasized the government’s vision to move from mere relief to empowerment. “We are actively exploring various options to better integrate the SRD grant with employment opportunities,” he said.

One of the key proposals under consideration is a Job-Seeker Allowance, which would fall under a broader strategy to reform Active Labour Market Programmes (ALMPs). These efforts aim to transition grant recipients into the workforce through targeted support measures.

“Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,” Godongwana explained.

Social Grants Landscape by 2028

The number of permanent social grant beneficiaries, excluding SRD recipients, is expected to rise to 19.3 million people by March 2028, highlighting the increasing reliance on government support amidst sluggish job creation and economic uncertainty.

While the government’s commitment to social assistance remains strong, analysts continue to raise concerns about the sustainability of the grants system, especially given South Africa’s constrained fiscal environment and slow economic growth.

The 2025 budget reaffirms the South African government’s resolve to protect its most vulnerable citizens through enhanced social spending. While permanent social grants have seen notable increases, the unchanged SRD grant remains a point of contention. However, the proposed integration of income support with employment pathways may signal a significant shift in how the state approaches long-term social protection and economic inclusion.