Has the SASSA SRD Grant Been Extended? Latest Updates for 2025

Simekahle Mthethwa15 May , 2025

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The COVID-19 Social Relief of Distress (SRD) grant has been officially extended until the end of March 2026. This extension provides continued financial support to millions of unemployed South Africans. The announcement includes the ongoing provision of the SASSA SRD Grant, which has been essential for many. This announcement was made by Finance Minister Enoch Godongwana during the 2025 Budget speech. In this speech, he allocated R35.2 billion for the grant’s extension in its current form.

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What Is the SRD Grant and Its Purpose?

The SRD grant was introduced in 2020 as a temporary relief measure during the COVID-19 pandemic. Specifically, the SASSA SRD Grant offers R370 per month to unemployed individuals who do not receive other social grants. Initially intended for six months, it has been extended multiple times due to ongoing economic hardship and unemployment.

Why Has the Grant Been Extended?

The extension reflects the government’s recognition of persistent unemployment and poverty levels. President Cyril Ramaphosa highlighted that the SRD grant, including the SASSA program, will serve as a foundation for a more sustainable income support system for unemployed people. However, the government is still working to identify a stable funding source. This effort aims to avoid crowding out other essential government spending.

Finance Minister Godongwana emphasised that the grant’s future form will be shaped by the outcomes of a review of active labor market programs. This review is expected by September 2025. It aims to create sustainable employment and income support mechanisms beyond the SRD grant.

Funding the Extension

The National Treasury proposed funding the SRD grant extension partly through an increase in the value-added tax (VAT). Another aspect involves the much-discussed SASSA SRD Grant which will benefit from this VAT adjustment, intended to generate additional revenue to cover the R35.2 billion cost of the extension, and support other government expenditures such as public service wage increases.

RELEVANT ARTICLE: SASSA Payment Dates for 2025: Full Grant Schedule for All Beneficiaries

While the SRD grant remains at R370 per month, other social grants have increased from April 2025. These increases aim to support vulnerable groups SASSA SRD Grant further. Key increases include:

Old age and disability grants rising by R130 to R2,315 per month
Child support grant increasing by R30 to R560 per month
Foster care grant rising by R70

These adjustments reflect the government’s broader commitment to strengthening social safety nets amid ongoing economic challenges.

What Lies Ahead for the SRD Grant?

The extension to March 2026 provides temporary relief, but it also signals the government’s intent to transition towards a more sustainable income support system, including the key SASSA SRD Grant. The final decision on the SRD grant’s future will depend on the labor market review outcomes later this year.

Meanwhile, the government continues to explore various funding options. These include reallocating budgets, boosting tax revenues, and improving spending efficiency. The goal is to maintain social support without compromising fiscal sustainability.

The SRD grant’s extension until March 2026 offers crucial financial assistance to millions of unemployed South Africans in Gauteng and beyond. It remains a vital part of the country’s social safety net. The government is working towards a long-term, sustainable income support solution. Beneficiaries should stay informed about developments following the active labor market program review, due in September 2025.

This extension, alongside increases in other social grants, underscores the government’s ongoing commitment to alleviating poverty. It supports vulnerable populations amid economic uncertainty.