A new era of social support may soon begin in South Africa. The Department of Social Development (DSD) is actively developing a Basic Income Grant for unemployed adults aged 18 to 59, aiming to reduce poverty and bridge the income gap.
Speaking to Parliament’s Portfolio Committee on Social Development, the department confirmed that a first draft of the Basic Income Support Policy was presented to the Cabinet Committee responsible for Social Protection on 26 November 2024.
DSD spokesperson Bathembu Futshane said work is still ongoing, with more consultations planned to ensure the policy is both effective and financially sustainable.
Policy Still Under Review Amid Stakeholder Engagement
Members of the committee stressed the importance of engaging stakeholders on the affordability of the grant. They also emphasized the need to connect grant beneficiaries to economic opportunities, ensuring the policy doesn’t merely offer temporary relief but a path toward long-term sustainability.
To align with this goal, the DSD held an interdepartmental workshop aimed at fostering collaboration across government sectors. Futshane confirmed that the workshop encouraged cooperation with departments like Labour, Treasury, and even the Presidency, to link basic income recipients with jobs and livelihood programmes.
A follow-up session is set for June 2025, after which the department will begin bilateral discussions to refine the policy further.
Cabinet to Review Policy by Late 2025
The department plans to present the revised Basic Income Grant policy to the Cabinet Committee in the second quarter of the 2025–2026 financial year. If approved, the proposed policy will be released for public comment, allowing citizens and organisations to share feedback before it becomes law.
This is a significant milestone in South Africa’s efforts to address long-standing economic inequality and unemployment. The policy aims to fill the gap for citizens who are not currently eligible for other social grants, such as the old age pension or child support grant.
R370 SRD Grant Will Continue Until Policy Is Finalised
To ensure continued support for the country’s most vulnerable, the R370 Social Relief of Distress (SRD) grant will remain in place throughout the consultation process.
Futshane confirmed that the National Treasury has granted the DSD permission to continue disbursing the R370 grant during the 2025–2026 financial year. This move is intended to prevent a lapse in support for the unemployed while the Basic Income Grant policy is still being developed and reviewed.
“The extension is crucial for avoiding extreme poverty during this transitional period,” said Futshane.
As South Africa looks to introduce its first formal Basic Income Grant, the months ahead will be crucial. With more consultations, workshops, and policy reviews planned, the future of social support in the country is taking shape—slowly, but surely.