The department of social development (DSD) has confirmed that the social relief of distress (SRD) grant, which now supports 7.2-million beneficiaries monthly, remains funded outside the baseline, with no fiscal provision beyond March 2026.
The disclosure was made during a briefing to the standing committee on appropriations (SCOA) on Tuesday by the department.
The SRD grant was introduced in 2020 as a temporary measure under the Disaster Management Act and extended through annual appropriations.
It now functions as a primary income support mechanism for unemployed individuals not covered by existing social security instruments.
While the department reiterated its policy intention to transition the SRD into a basic income support (BIS) framework, no costed implementation plan has been tabled.
The absence of baseline allocations in the 2025 medium-term expenditure framework (MTEF) was noted by committee members.
In responding to questions Linton Mchunu, the department’s director-general, said: “We are engaging with Treasury on the long-term sustainability of the SRD grant. At present, the allocation is off-baseline and subject to annual reprioritisation.”
No indication has been given on whether the grant would be absorbed into the social assistance programme under the Social Assistance Act.
The SA Social Security Agency (Sassa), tasked with administering the grant, reported compliance with several National Treasury conditions.
These include biometric verification, bulk beneficiary reviews, and data-sharing agreements with the department of home affairs, Sars, NSFAS, UIF and the Government Pensions Fund. Sassa confirmed that 190,000 reviews had been completed and that biometric systems were operational in 52 offices.
However, delays in implementing bank income checks and suspensions of non-compliant beneficiaries were acknowledged.
“We are now using credit bureau data to verify income thresholds. The biometric rollout is progressing, but we are mindful of access challenges in rural areas,” Sassa CEO Busisiwe Memela-Khambula said.
Committee members raised concerns about digital exclusion, particularly among older people and rural populations.
Sassa indicated that mitigation strategies include home visits and assisted registration, but acknowledged that systemic exclusion risks remained.
The committee also received clarification on the termination of Sassa’s master service agreement with Postbank. The department cited infrastructure failures, legal irregularities and the closure of rural pay points as justification.
Beneficiaries have transitioned to commercial banks, which offer free transactional services. However, ATM withdrawal fees and service accessibility in remote areas remained under review.
R3m New York trip
Meanwhile, the social development department defended its R3m expenditure on a seven-member delegation to New York for a UN gender equality summit.
The department said the trip facilitated bilateral engagements with UN Women, UNFPA and the University of Maryland.
“This was a strategic investment in SA’s global leadership on gender-responsive budgeting,” said deputy minister Hendrietta Bogopane-Zulu.
The expenditure was not found to be irregular under the Public Finance Management Act (PFMA), but members requested a detailed impact report.
The department also said a structural underfunding of R9.2bn, based on Treasury’s 2018 peer review, had constrained its ability to appoint over 15,000 qualified social workers and meet statutory obligations under the Children’s Act, Older Persons Act and Prevention of and Treatment for Substance Abuse Act.
Payment delays to nonprofit organisations were also flagged, with only 81% processed in the first quarter. Compliance and registration issues were cited as contributing factors.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.