Finance Minister Enoch Godongwana outlines plans for a new Livelihood Grant to replace the Social Relief of Distress Grant, ensuring continued support for South Africans facing economic challenges.
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Finance Minister Enoch Godongwana announced on Wednesday that discussions are currently underway regarding a new Livelihood Grant, which is set to replace the widely-utilised Social Relief of Distress Grant.
In a closed media briefing held before his 2026 Budget Speech in Parliament, Godongwana explained that the modalities and structure of what President Cyril Ramaphosa has referred to as a Livelihood Grant are still to be determined.
“The final details will be outlined in the Medium Term Budget Policy Statement after we have a better understanding of how the Livelihood Grant will work,” he said.
The Social Relief of Distress Grant, which was introduced in March 2020 during the COVID-19 pandemic, has served as a crucial lifeline for millions of South Africans grappling with food insecurity. In his State of the Nation Address earlier this year, Ramaphosa highlighted the grant's significant role in alleviating widespread poverty.
“This year, we will redesign the grant to more effectively support livelihoods, skills development, work opportunities and productive activity,” he stated.
As Godongwana addressed the Members of Parliament, he confirmed that the Social Relief of Distress Grant will continue to operate in its current form throughout the 2026/27 financial year.
“The Social Relief of Distress grant is allocated an additional R36.4 billion to extend payments until 31 March 2027 at the current R370 per month per beneficiary,” he noted.
This allocation marks an increase from the R34.2 billion designated for the 2025/26 financial year. Godongwana also revealed that the total allocation for all social grants in the upcoming 2026/27 financial year will amount to R292.8 billion.
However, the Budget Review document indicates that social grant allocations have been adjusted downwards over the medium term, reflecting a lower inflation outlook and improved targeting and verification processes. This adjustment is expected to yield savings of R2 billion in 2026/27 and R1 billion in 2027/28.
According to the Social Development Department's budget vote, allocations are projected to decrease from R285.9 billion in 2025/26 to R277 billion in 2028/29.
“This is mainly due to the anticipated discontinuation of Social Relief of Distress related to the Covid-19 pandemic from 2027/28,” Godongwana explained.
The number of grants administered by the agency, excluding those related to the Covid-19 pandemic, is expected to decline from 19.1 million in 2025/26 to 18.9 million in 2028/29.
“This is mainly attributable to efficiency reforms aimed at strengthening legislative compliance to ensure that grants are disbursed only to those who rightfully qualify for them,” he added.
The budget document also mentioned that the department is in the process of reviewing social security policies.
“This is expected to lead to the updating of the draft basic income support policy by strengthening the link to employment pathways and sustainable livelihoods for beneficiaries,” Godongwana stated.
“Expenditure for this work is funded through the allocation of R237.6 million over the MTEF period in the Social Security Policy Development sub-programme in the Social Security Policy and Administration programme.”
Additionally, the document noted that the department is finalising a longer-term support package for individuals aged 18 to 59 who lack income protection.
During his Budget address, Godongwana announced that the old age grant, disability grant, and care dependency grant will increase by R80 in April 2026, bringing them to R2,400.
The war veterans grant will also see an increase of R80, raising it to R2,420.
The foster care grant will rise to R1,290 in April, reflecting a R40 increase, and will further increase to R1,300 in October, a R10 rise.
Finally, the child support grant and grant-in-aid grant will increase by R20, reaching R580.
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