Myths vs Facts: Universal Basic Income

A fact sheet by the Institute for Economic Justice addressing common misconceptions regarding Universal Basic Income (UBI) in South Africa, arguing that UBI is a matter of justice and economic stimulus rather than charity.

• Universal Basic Income (UBI) is argued to enable people to seek meaningful work rather than encouraging laziness, noting that over 50% of South African youth lack the funds required to cover the costs of searching for employment.
• The document contends that universal systems are superior to targeted income support because means-testing and digital filters lead to high exclusion errors and administrative burdens.
• The gross cost of a UBI set at the current food poverty line of R1 634 per month is estimated at approximately R342 billion, though the net cost would be lower due to economic growth and tax returns.
• The Social Relief of Distress (SRD) grant is described as insufficient and failing, with a monthly amount of R370 and an exclusion rate where nine out of ten exclusions are considered incorrect.
• A proposed starting point for a decent UBI is approximately R796 per month, which corresponds to the current national food-poverty line required to afford food.

APA

iej_admin (2025). Myths vs Facts: Universal Basic Income. Institute for Economic Justice. https://iej.org.za/resource/ubi/myths-vs-facts-universal-basic-income/

Chicago

iej_admin. Myths vs Facts: Universal Basic Income. Institute for Economic Justice, 2025. https://iej.org.za/resource/ubi/myths-vs-facts-universal-basic-income/.

Wikipedia

{{cite report |last1=iej_admin |title=Myths vs Facts: Universal Basic Income |publisher=Institute for Economic Justice |date=9 December 2025 |url=https://iej.org.za/resource/ubi/myths-vs-facts-universal-basic-income/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iejadmin2025myths, author = {iej\_admin}, title = {{Myths vs Facts: Universal Basic Income}}, institution = {Institute for Economic Justice}, year = {2025}, month = dec, url = {https://iej.org.za/resource/ubi/myths-vs-facts-universal-basic-income/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }