The South African Social Security Agency (SASSA) commenced the Social Relief of Distress (SRD) grant as a temporary procedure for giving financial relief to fellow South Africans that were very heavily affected from COVID-19 pandemic. Initially, SRD grant was started with a R350 a month benefit, extending itself several times to assist millions of South Africans suffering due to joblessness and economic difficulties. However, the official culmination of the SRD grant as per the statement is due in March 2025, and the government declared the inception of a new Universal Basic Income (UBI) system that should then follow to replace it. This article lay emphasis on the demise of the SRD grant and, alongside it, the launching of UBI, plus the impact on South Africans.
SASSA SRD Grant Ending
Since then, it has come as the greatest financial assistance to South Africans from 2020, cushioning the stress of the unemployed or those unable to earn a stable income. South Africans will see an end to the SRD fund as they exit the pandemic and the government seeks to discover long-term fixes for real economic stability, effective by March 2025.
This development is part of a wider government move towards more sustainable social safety nets. Considering that the SRD grant was touted as a temporary measure, government is focusing itself on finding a more lasting solution to fighting poverty and unemployment as well as securing the financial welfare of its people.
Introduction of the Universal Basic Income (UBI) System
In the wake of cessation of the SRD grant, the South African government has plans to implement a Universal Basic Income (UBI) system. This system has been intended to replace the SRD grant and provide regular and unconditional cash to each and every South African citizen, notwithstanding his or her employment status or income sources.
The purpose of the UBI system is to do away with poverty and minimize income inequality through ensuring that minimum amount must be paid to every citizen. This is a milestone in the war against systemic poverty and pushing for inclusion into a financially-inclusive South Africa. The new conduit would entail developing a monthly fixed payout to eligible people on the back of slightly greater amounts than the R350 from the SRD grant now being offered. The payout will be determined by the fiscal capacity of the state and the broader economic circumstances.
How Will UBI Function?
The Universal Basic Income program will, however, build a safety net against financial precariousness into the lives of all who lack a job or are confused with the reality of having a low-wage job. On the opposite, the SRD grant only serves specific people. Such would thus be obtainable by anyone, irrespective of whether he/she is employed or self-employed or is still seeking work.
The recipient will receive payments through the familiar and usual channels into their bank accounts or, as per the terms and conditions, the recipient can use any other mode from which funds are accessible. All this would manage to free up avenues by removing gripping poverty in the most efficient way.
Also Read: SASSA Grant Increases in 2025: What South Africans Need to Know
