Nine-million recipients of the R370 SASSA SRD grant can breathe a sigh of relief this morning. Finance Minister Enoch Godongwana announced a 14-month extension yesterday (Wednesday 12 November 2025) during his Medium-Term Budget Policy Statement (MTBPS) in Cape Town.
As we all know, the SASSA SRD grant was first introduced during the COVID‑19 pandemic. What started as temporary financial support to the unemployed has been extended every year since. Moreover, because it is classed as a ‘temporary’ fund, so is its budget allocation …
SASSA SRD GRANT EXTENSION
Furthermore, critics of the SASSA SRD grant believe the ANC has used it as a political tool. In the lead up to the 2024 election, for example, the ANC increased SRD from R350 to R370 for the first time. Unfortunately for them, the chicanery didn’t work. The people voted and the party could not hold onto majority rule.
Nevertheless, the latest SASSA SRD grant extension to 2027 does raise some budgetary questions. The South African Social Security Agency is being forced to cut its budget by R14 billion in the next financial year. As The South African reported, this would entail cutting nearly 500 000 Old-Age beneficiaries or two-million Child Support recipients from ‘core’ grants.
MANAGING 2026 BUDGET CUTS
Financially speaking, the SASSA SRD grant currently reaches roughly 9-million poor South Africans each month. Multiplied by R370, that will cost the fiscus R3.33 billion per month, or roughly R45 billion till the extension date of March 2027.
Controversially, last year, it was ruled unconstitutional in court to limit the number of SASSA SRD grant recipients to maintain the budget. Therefore, with unemployment rising, it’s equally implausible that the number of recipients should stay the same at 9 million year after year. However, the minister insists the 2027 extension comes with stricter beneficiary reviews. This will include cross‑checks against tax, Unemployment Insurance Fund (UIF) and Home Affairs’ databases.
CONTRADICTIONS OVER SASSA SRD GRANT
Nevertheless, Godongwana insists in the MTBSP that, “government remains committed to supporting low-income and vulnerable households.” And that all allocations within the social welfare envelope are protected, even as fiscal consolidation proceeds.
However, this statement contradicts Department of Social Welfare Deputy Minister Ganief Hendricks’ statement that: “Given substantial pressures on the fiscus, government has had to make difficult decisions to bring public finances back under control.”
But what do you think? Should SASSA SRD grants have been extended? Or can those billions be better spent elsewhere? Let us know in the comments section below …
