The universal grant is a necessity for millions
Summary
The Institute for Economic Justice and partner organisations advocate for transitioning the Social Relief of Distress (SRD) grant into a permanent universal basic income guarantee (Ubig) in South Africa. They argue that a Ubig is fiscally feasible through progressive taxation and would act as an economic stimulus by boosting local consumption and productivity. The authors call for the grant's value to be increased to at least the Food Poverty Line and eventually the upper bound poverty line (approximately R1,500), urging the presidency to establish a high-level review to implement this transition.
Key insights
- A universal basic income guarantee (Ubig) is fiscally sustainable in South Africa and can be introduced incrementally using progressive funding mechanisms, including a social security tax, a resource rent tax, a wealth tax, a targeted VAT on luxury items, the removal of corporate tax breaks, and the reduction of irregular expenditure.
- Comprehensive social protection, such as the R350 Social Relief of Distress (SRD) grant, serves as an economic stimulus by increasing household consumption and supporting job-seeking activities through funding for transport, internet, and printing, as well as enabling investment in informal enterprises.
- The authors propose that the SRD grant be made permanent and expanded into a Ubig, with its value increased immediately to the Food Poverty Line and reaching the upper bound poverty line (approximately R1,500) in the medium term.
- The United Nations Committee on Economic, Social and Cultural Rights has indicated that the South African government's policy efforts to ensure social assistance for adults aged 18 to 59 are insufficient.
Cite the original document
- APA
- Eccles, J., Howson, K., Mabitle, G., Philander, E., Seopa, T., & van Straten, C. (2022). The universal grant is a necessity for millions. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/the-universal-grant-is-a-necessity-for-millions/
- Chicago
- Eccles, Julia, Kelle Howson, Gabriel Mabitle, Esley Philander, Tlou Seopa, and Christina van Straten. The universal grant is a necessity for millions. Institute for Economic Justice, 2022. https://iej.org.za/press-room/in-the-media/the-universal-grant-is-a-necessity-for-millions/.
- Wikipedia
- {{cite press release |last1=Eccles |first1=Julia |last2=Howson |first2=Kelle |last3=Mabitle |first3=Gabriel |last4=Philander |first4=Esley |last5=Seopa |first5=Tlou |last6=van Straten |first6=Christina |title=The universal grant is a necessity for millions |publisher=Institute for Economic Justice |date=8 February 2022 |url=https://iej.org.za/press-room/in-the-media/the-universal-grant-is-a-necessity-for-millions/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{eccles2022universal, author = {Eccles, Julia and Howson, Kelle and Mabitle, Gabriel and Philander, Esley and Seopa, Tlou and van Straten, Christina}, title = {{The universal grant is a necessity for millions}}, publisher = {Institute for Economic Justice}, year = {2022}, month = feb, url = {https://iej.org.za/press-room/in-the-media/the-universal-grant-is-a-necessity-for-millions/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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