2026 SASSA grants face steep budget cuts in the new financial year. And recent comments from the Deputy Minister of Social Development Ganief Hendricks have not put beneficiaries’ minds at ease. Earlier this month, a group of elderly pensioners marched to parliament.
Upon which they handed over a memorandum to the deputy minister asking for an increase to old-age benefits. However, it was Hendricks’ terse response that caught everyone off guard. He intimated that pensioners would not be taken for granted. “But given the substantial pressures on the fiscus, government has had to make difficult decisions to bring public finances back under control,” said the deputy minister.
2026 SASSA GRANTS IN DOUBT
The South African has been following the story for some time. And it’s clear that social welfare is heading for a critical juncture next year. Because the South African Social Security Agency is confronting dramatic budget reductions over the next two fiscal years.
The department’s current budget of R285 billion represents a peak that cannot be sustained. With allocations – from which 2026 SASSA grants are drawn – declining to R271 billion in 2026/27. And further still to R260 billion in 2027/28.
R25-BILLION REDUCTION IN TWO YEARS
As such, the R14-billion reduction in the first year, followed by an additional R11-billion cut in year two is more than just accounting. For a department responsible for delivering social grants to over 28-million poor South Africans, a R25-billion funding cut from current levels carries profound implications.
To understand the scale of these cuts, we did some exploratory calculations for 2026 SASSA grants. Take the SASSA Old-Age Grant for 60-74 year olds, for example. It currently pays R2 320 per month. The initial R14 billion reduction for 2026 SASSA grants would require cutting approximately 502 000 Old-Age grant recipients to meet the budget target. That’s roughly one-eighth of the four-million beneficiaries currently on state pension.
UNCERTAINTY OVER 2026 SASSA GRANTS
The above calculation comes from dividing R14 billion by the annual cost per recipient – R27 840, or R2 320 multiplied by twelve months). If we extrapolate this to 2027/28, a cumulative reduction reaches R25 billion. And 898 000 elderly South Africans would need to be removed from Social Pension (SOCPEN) system to balance the books.
Of course, these basic calculations assume only one grant type will bear the burden of cuts to 2026 SASSA grants. Which is highly unrealistic. Nevertheless, the impact becomes even more staggering when viewed through the lens of SASSA Child Support. It is currently R560 per month, paid to 13-million needy families with under 18s.
DEVASTATION FOR SASSA CHILD SUPPORT
According to basic calculations, the same R14-billion shortfall for 2026 SASSA grants would be catastrophic. It would necessitate removing 2-million households from the support system, or more than 15%. This is calculated by dividing R14 billion by R6 720 (the annual cost of R560 multiplied by twelve months). By the next financial year, the cumulative R25-billion gap would require cutting 3.7-million children from the list.
Once again, in practice, reductions to 2026 SASSA grants will need to be spread across multiple categories. And it is the Department of Social Development’s leadership who must decide to what extent. Nevertheless, the mathematics illustrates the sheer magnitude of the challenge. And, more importantly, the vulnerability and livelihood of the millions of South Africans who have come to depend on these grants for survival.
But what do you think? Which 2026 SASSA grants should see the biggest cuts? Or should Social Relief of Distress(SRD) be the one to go entirely? Let us know in the comments section below …
