UBIC statement: uncertainty over SRD grants' future

The UBIC opposes government proposals to link the Social Relief of Distress (SRD) grant to employment, arguing that such conditions are ineffective in a context of structural unemployment and serve as a tactic to reduce social spending. The statement calls for the grant, which is due to expire in March 2026, to be extended and transformed into an unconditional, expansive basic income to address poverty.

• The Social Relief of Distress (SRD) grant is scheduled to expire in March 2026, affecting approximately 8 million beneficiaries, yet the government has not provided clear information on its future.
• Government proposals for the grant's future include turning it into a 'job-seeker’s' allowance requiring proof of job searching, introducing 'employment linkages', or allowing beneficiaries to opt for lump-sum transfers instead of monthly payments.
• UBIC argues that linking grants to employment is ineffective because South Africa's unemployment is structural, caused by a lack of available jobs rather than a lack of effort from job seekers.
• Evidence suggests that unconditional cash transfers are more effective at creating livelihoods than employment-linking programmes; a World Bank study found such programmes in South Africa cost over R100 billion but largely failed to benefit the most marginalised.
• UBIC contends that the government's focus on employment linkages is a strategy to decrease the number of eligible beneficiaries and reduce overall social spending.

APA

Institute for Economic Justice (2025). UBIC statement: uncertainty over SRD grants' future. https://iej.org.za/press-room/statements/ubic-statement-uncertainty-over-srdgrants-future/

Chicago

Institute for Economic Justice. UBIC statement: uncertainty over SRD grants' future. 2025. https://iej.org.za/press-room/statements/ubic-statement-uncertainty-over-srdgrants-future/.

Wikipedia

{{cite press release |author=Institute for Economic Justice |title=UBIC statement: uncertainty over SRD grants' future |date=5 November 2025 |url=https://iej.org.za/press-room/statements/ubic-statement-uncertainty-over-srdgrants-future/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{instituteforeconomicjustice2025ubic, author = {{Institute for Economic Justice}}, title = {{UBIC statement: uncertainty over SRD grants' future}}, publisher = {Institute for Economic Justice}, year = {2025}, month = nov, url = {https://iej.org.za/press-room/statements/ubic-statement-uncertainty-over-srdgrants-future/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }