Why SRD Stays at R370 — The Sassa Basic Income Debate Explained

The SRD grant has paid R370 a month for three years running, even as every other SASSA grant received an increase in 2026. Here’s the context behind that number, and what might replace it.

• The R624 Gap
• What Civil Society Has Said
• The Livelihoods Support Grant Proposal
• The Timeline So Far
• Treasury’s Cost Concerns
• What Happens After March 2027?
• FAQs
• Final Thoughts

The R624 Gap

R370 sits well below South Africa’s official food poverty line of R624 per month — the minimum amount Treasury itself uses to define basic nutritional needs. Civil society organizations have repeatedly called for the SRD amount to be raised to at least that level, arguing R370 doesn’t cover even basic food costs for a single adult.

What Civil Society Has Said

Advocacy groups have pointed out that while seven of SASSA’s eight grant types received above-inflation increases in the 2026 budget, the grant reaching the country’s poorest and most economically vulnerable adults was the one exception. The frustration isn’t just about the amount staying flat — it’s about the gap between R370 and what’s actually needed to meet basic needs continuing to widen as the cost of living rises.

The Livelihoods Support Grant Proposal

President Ramaphosa confirmed at the 2026 State of the Nation Address that government will redesign the SRD grant “to more effectively support livelihoods, skills development and work opportunities” — language that has now replaced the earlier generic “Basic Income Support (BIS)” framing in official communication, though many people still refer to the proposal by that older name. The emerging design links financial support more closely to job-seeking activity, skills training, and employment pathways, rather than functioning as an unconditional payment to everyone who currently qualifies under SRD’s rules.

The Department of Social Development’s public consultation on the new design closed on 30 April 2026. Costing models have reportedly already been finalized following a draft framework submitted to Cabinet, and pilot programmes connecting Child Support Grant recipients to livelihood opportunities are already running in Gauteng, KwaZulu-Natal, and the Free State.

The Timeline So Far

As of mid-2026, the process has a more concrete shape than it did earlier in the year:

• July 2026 — National Treasury expected to confirm whether it supports the proposed framework
• If supported, August 2026 — Cabinet asked to approve the draft for public comment
• Following public input — a final version goes back to Cabinet
• March 2027 — targeted final Cabinet approval
• After that — amendments to the Social Assistance Act would still be required before the grant could actually become law

Worth knowing: a change in leadership at the Department of Social Development has added some uncertainty to this timeline, and an interim minister is currently overseeing the process. Even on a smooth run from here, this means the Livelihoods Support Grant would not replace SRD immediately, even after March 2027.

Treasury’s Cost Concerns

A universal, no-conditions basic income for all unemployed adults would be extremely costly at national scale. Treasury has previously flagged this directly, which is why the emerging design is expected to retain specific eligibility criteria — such as active job-seeking or skills-development requirements — rather than function as an unconditional payment to everyone who qualifies under SRD’s current rules.

What Happens After March 2027?

SRD funding is currently confirmed only through 31 March 2027. Given the legislative steps still required even after Cabinet approval, the Department of Social Development has indicated it may seek a further extension of SRD itself beyond that date specifically to avoid any interruption in support while the new framework’s legal process plays out. In other words, the most likely outcome is continuity — either SRD extended again in its current form, or a smooth handover once the new grant is legally in place — rather than a sudden gap in support. We’ll update this page as soon as anything is officially confirmed; there’s no need to take any action now, since your current SRD application and payments are unaffected by this ongoing policy discussion.

FAQs

• Why hasn’t the SRD grant increased? The 2026 budget prioritized extending SRD’s funding period over raising the amount.
• What is the food poverty line in South Africa? R624 per month, the official Treasury threshold for minimum nutritional needs.
• What is the Livelihoods Support Grant? The proposed permanent replacement for the temporary SRD grant, linking support to job-seeking and skills development — the same proposal many people still know as Basic Income Support (BIS).
• When will it replace SRD? No confirmed date — even with a smooth approval process, legislative steps mean it wouldn’t happen immediately after the targeted March 2027 Cabinet approval.
• Could SRD be extended again beyond March 2027? Yes — the Department of Social Development has indicated this is possible specifically to avoid a gap in support while the new framework’s legal process completes.
• Does this affect my current SRD payments? No — this is a policy discussion about the future; your current grant continues as normal.

Final Thoughts

R370 remains well below the R624 food poverty line, and that gap is the core of the ongoing debate. The proposed Livelihoods Support Grant — what most people still call Basic Income Support — now has a more concrete timeline than before, but it still involves several more approval steps and a legislative process even in the best case. Nothing about your current SRD application or payments changes because of this discussion, and we’ll update this guide as soon as anything is officially confirmed.

For the full SRD grant picture, see our SRD Grant Overview; for what else changed in the 2026/27 budget, see our Grant Increases guide.

R370 sits well below South Africa’s official food poverty line of R624 per month — the minimum amount Treasury itself uses to define basic nutritional needs. Civil society organizations have repeatedly called for the SRD amount to be raised to at least that level, arguing R370 doesn’t cover even basic food costs for a single adult.

What Civil Society Has Said

Advocacy groups have pointed out that while seven of SASSA’s eight grant types received above-inflation increases in the 2026 budget, the grant reaching the country’s poorest and most economically vulnerable adults was the one exception. The frustration isn’t just about the amount staying flat — it’s about the gap between R370 and what’s actually needed to meet basic needs continuing to widen as the cost of living rises.

The Livelihoods Support Grant Proposal

President Ramaphosa confirmed at the 2026 State of the Nation Address that government will redesign the SRD grant “to more effectively support livelihoods, skills development and work opportunities” — language that has now replaced the earlier generic “Basic Income Support (BIS)” framing in official communication, though many people still refer to the proposal by that older name. The emerging design links financial support more closely to job-seeking activity, skills training, and employment pathways, rather than functioning as an unconditional payment to everyone who currently qualifies under SRD’s rules.

The Department of Social Development’s public consultation on the new design closed on 30 April 2026. Costing models have reportedly already been finalized following a draft framework submitted to Cabinet, and pilot programmes connecting Child Support Grant recipients to livelihood opportunities are already running in Gauteng, KwaZulu-Natal, and the Free State.

The Timeline So Far

As of mid-2026, the process has a more concrete shape than it did earlier in the year:

• July 2026 — National Treasury expected to confirm whether it supports the proposed framework
• If supported, August 2026 — Cabinet asked to approve the draft for public comment
• Following public input — a final version goes back to Cabinet
• March 2027 — targeted final Cabinet approval
• After that — amendments to the Social Assistance Act would still be required before the grant could actually become law

Worth knowing: a change in leadership at the Department of Social Development has added some uncertainty to this timeline, and an interim minister is currently overseeing the process. Even on a smooth run from here, this means the Livelihoods Support Grant would not replace SRD immediately, even after March 2027.

Treasury’s Cost Concerns

A universal, no-conditions basic income for all unemployed adults would be extremely costly at national scale. Treasury has previously flagged this directly, which is why the emerging design is expected to retain specific eligibility criteria — such as active job-seeking or skills-development requirements — rather than function as an unconditional payment to everyone who qualifies under SRD’s current rules.

What Happens After March 2027?

SRD funding is currently confirmed only through 31 March 2027. Given the legislative steps still required even after Cabinet approval, the Department of Social Development has indicated it may seek a further extension of SRD itself beyond that date specifically to avoid any interruption in support while the new framework’s legal process plays out. In other words, the most likely outcome is continuity — either SRD extended again in its current form, or a smooth handover once the new grant is legally in place — rather than a sudden gap in support. We’ll update this page as soon as anything is officially confirmed; there’s no need to take any action now, since your current SRD application and payments are unaffected by this ongoing policy discussion.

FAQs

• Why hasn’t the SRD grant increased? The 2026 budget prioritized extending SRD’s funding period over raising the amount.
• What is the food poverty line in South Africa? R624 per month, the official Treasury threshold for minimum nutritional needs.
• What is the Livelihoods Support Grant? The proposed permanent replacement for the temporary SRD grant, linking support to job-seeking and skills development — the same proposal many people still know as Basic Income Support (BIS).
• When will it replace SRD? No confirmed date — even with a smooth approval process, legislative steps mean it wouldn’t happen immediately after the targeted March 2027 Cabinet approval.
• Could SRD be extended again beyond March 2027? Yes — the Department of Social Development has indicated this is possible specifically to avoid a gap in support while the new framework’s legal process completes.
• Does this affect my current SRD payments? No — this is a policy discussion about the future; your current grant continues as normal.

Final Thoughts

R370 remains well below the R624 food poverty line, and that gap is the core of the ongoing debate. The proposed Livelihoods Support Grant — what most people still call Basic Income Support — now has a more concrete timeline than before, but it still involves several more approval steps and a legislative process even in the best case. Nothing about your current SRD application or payments changes because of this discussion, and we’ll update this guide as soon as anything is officially confirmed.

For the full SRD grant picture, see our SRD Grant Overview; for what else changed in the 2026/27 budget, see our Grant Increases guide.