Chikunga promises a new grant but the money is not there yet

By Palesa Matlala

  • Acting Social Development Minister Sindi Chikunga told Parliament the new Basic Income Support grant will not replace job creation efforts by government.
  • The R370 Social Relief of Distress grant runs until March 2027, giving government time to finalise and fund the redesigned replacement.

The government is promising South Africa’s poorest adults a new grant. It has not yet confirmed whether it can afford one.

Acting Social Development Minister Sindi Chikunga briefed the National Council of Provinces Select Committee on Social Services this week.

She said the Department of Social Development is preparing a Basic Income Support policy for Cabinet to review. After Cabinet refines the draft, the department will open public consultations.

The proposed grant is designed to replace the R370 Social Relief of Distress grant, which currently supports unemployed adults between the ages of 18 and 59 who are able to work.

President Cyril Ramaphosa confirmed during his State of the Nation Address that the replacement would be structured as a jobseeker’s grant, linking recipients to help finding work, training and small business opportunities.

Chikunga was clear that the grant is not a job creation programme.

“Basic Income Support is not a substitute for job creation,” she said.

“It is a complementary intervention that links recipients to income-generating and sustainable livelihood opportunities.”

But the department has not yet settled the most basic question: where the money comes from. Officials said they will meet the National Treasury to work out whether the grant is affordable over the long term. Economic models are still being tested.

The current SRD grant has been extended to March 2027. The government says the new grant will use it as a starting point.

Pictured above: Acting Social Development Minister Sindi Chikunga told Parliament this week that the planned Basic Income Support grant will not replace job creation.

Image source: GovernmentZA

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