SASSA to bring Universal Basic Income Grant, End of SRD Payments
This announcement came just a week before the elections, with the ANC pledging to implement the policy within two years if they secure a new term in government.
Commitment to Universal Basic Income (UBI)
The ANC has announced a significant plan to turn the COVID-19 relief grant into a universal basic income (UBI). This announcement was made a week before the elections, and the ANC aims to implement this policy within two years if they form a new government
If successful, South Africa would be the first country to introduce a UBI, providing regular payments to all individuals aged 18 to 59, regardless of their employment status.
Current State of Social Relief in South Africa
The Social Relief of Distress (SRD) grant in South Africa is provided to individuals whose monthly income is below the food poverty line. The ANC plans to extend this support to all adults by gradually increasing the income threshold. Presently, the means-testing criteria are based on the 2021 poverty line, which has since increased, making some people in need excluded.
SASSA Basic Income Grant (BIG) Implementation Expected
The President of the African National Congress (ANC), Cyril Ramaphosa, has again promised to implement a permanent Basic Income Grant (BIG) during their manifesto launch on February 24 but hasn’t specified when this will happen. If SASSA Basic Income Grant is implemented, it will benefit everyone regardless of their age, gender, or income.
In his State of the Nation Address (SONA) in February, the President said, “The ruling party would progressively implement a basic income support grant by extending and improving the value and coverage of the Social Relief of Distress (SRD) grant for the unemployed.” The BIG aims to reduce poverty and vulnerability among those without income.
BIG’s Economic Context
The grant known as SRD, which provides a monthly sum of R350 then and now R370, is a lifeline for millions of unemployed South Africans. The country has one of the highest unemployment rates in the world, currently at 32.1%.
The government’s report claims that about 9 million people receive the SRD grant every month, but other sources indicate that the actual number of beneficiaries might be closer to 7.7 million.
Political and Social Consequences of Basic Income Grant
The BIG has been a highly debated topic in South African society. Critics argue that welfare programs like this might discourage job-seeking among capable individuals and create dependency. However, President Ramaphosa argues that the grants protect the unemployed from poverty and social destitution.
The ANC’s stance on the BIG is crucial from a political perspective. If implemented effectively, the program could increase the party’s support among a large population affected by poverty and unemployment. However, ineffective management and funding of the program could have political consequences and raise doubts about the party’s ability to govern effectively.
