CAPE TOWN - After much anticipation, the Social Relief of Distress Grant (SRD), which has provided support to more than 10 million unemployed South Africans, will officially be extended for another year until March 2023.
In his State of the Nation Address (Sona) on Thursday night, President Cyril Ramaphosa said a fiscal crisis would hurt the poor worst of all through the deterioration of the basic services on which they rely.
“Mindful of the proven benefits of the grant, we will extend the R350 SRD Grant for one further year, to the end of March 2023.
“During this time, we will engage in broad consultations and detailed technical work to identify the best options to replace this grant. Any future support must pass the test of affordability, and must not come at the expense of basic services or at the risk of unsustainable spending.
“It remains our ambition to establish a minimum level of support for those in greatest need.”
He said since its formation, the SA Revenue Service (Sars) has collected around R16 trillion for the country’s social and economic development.
This revenue has enabled the government to improve the lives of millions through the provision of healthcare, education, social grants and other basic services.
Ahead of Ramaphosa’s address, human rights organisation Black Sash had called for the SRD grant to remain in place, saying it must be improved and increased to at least the Food Poverty Line, which is currently R624.
Residents reliant on the SRD grant said they welcomed more financial support from the government.
They also hoped that the South African Social Security Agency (Sassa) would be able to get its house in order for smoother processes in relief access.
Speaking to the Cape Times, Yolanda Bowers said she initially received the SRD grant, but this was stopped after two months.
“I'm a single mom with a child in high school and another one in primary school.The Sassa grant goes directly to their school supplies. It is difficult finding work, so I take boxes and cans to the scrapyard to generate some form of income into the household.”
Mandy Japhta, 30, a single mom of three, said the Sona had a huge impact on her life as it affected both her and her children, aged 11 months, 2 and 4 years old.
“That money counts a lot for me as I'm unemployed. I am able to buy things for the children to eat during the week. The R350 is a big contribution as a single mom because it keeps me going throughout the month.”
Tersha Brink, 33, a mom of two, said: “The R350 had a huge impact as it was extra with the children’s grant. I would like it to continue since I have been unemployed for four years and have been casually helping in my dad’s tuck shop. I have been receiving my R350 since August until it stopped in December. The system shows that I’m UIF registered but I am not receiving any UIF.”
Brink said she has been back and forth with Sassa to continue receiving the grant, and was told she may receive her money for January and February by March, but it's not definite.
Theo van Wyk, 52, applied for the social relief of distress grant in 2020 and only received his R350 for the first time at the beginning of this month.
He has been unemployed since 2019 when he got retrenched and has not been receiving any form of income.
“Although I only received it once, I'm hoping it continues.”
On unemployment, Ramaphosa blamed low economic growth, which has in turn resulted from a long-term decline in investment.
He said there was agreement among a broad and diverse range of South Africans that fundamental reforms were needed to revive economic growth.
“If there is one thing we all agree on, it is that the present situation – of deep poverty, unemployment and inequality – is unacceptable and unsustainable.There is a need both to address the immediate crisis and to create conditions for long-lasting stability and development.
“To achieve this, South Africa needs a new consensus. As the social partners – government, labour, business and communities – we are working to determine the actions we will take together to build such a consensus.
“We have begun discussions on what trade-offs are needed and what contribution we will each need to make. We have given ourselves 100 days to finalise a comprehensive social compact to grow our economy, create jobs and combat hunger.”
Cape Times