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ActionSA welcomes the recent landmark ruling by the High Court in the Social Relief of Distress (SRD) Grant case. This ruling, which found several provisions in the regulations governing the administration of SRD grants unlawful and unconstitutional, underscores the urgent need for a clear and comprehensive policy framework—something that is currently absent.

Co-applicants, the Institute for Economic Justice and #PayTheGrants, successfully challenged the restrictive regulations that have unjustly excluded millions of qualifying South Africans from receiving assistance. 

In October last year, the South African Social Security Agency (SASSA) reported that over 17 million people had applied for the SRD grant, yet only 8.5 million were approved as beneficiaries—many of whom still faced payment delays and administrative failures. The court ruled against several problematic provisions, including the online-only application process, outdated government databases, flawed means-testing methods, a weak appeals mechanism, and the declining real value of both the means test threshold and the grant itself.

ActionSA has consistently advocated for a more effective and inclusive social assistance framework. Our proposed Universal Basic Income Stimulus (UBIS) model introduces a three-year phased approach to direct cash transfers, set at the food poverty line in year one, the lower-bound poverty line in year two, and the upper-bound poverty line in year three. All adult South Africans earning below the SARS income tax threshold, along with all children eligible for the Child Support Grant, would be automatically registered for UBIS.

Unlike proposals that merely replace existing grants, UBIS serves as an additional income source to stimulate economic participation, fostering growth and job creation through the economic multiplier effect. In May last year, the Universal Basic Income Coalition (UBIC) ranked ActionSA’s UBIS policy as the strongest among all major political parties—a testament to our unwavering commitment to combating chronic poverty and empowering marginalised South Africans.

ActionSA remains steadfast in our mission to champion social justice and uplift those left behind by government inefficiencies. We join UBIC and other civil society organisations in calling on President Cyril Ramaphosa to provide clear policy direction on social grants in his upcoming State of the Nation Address (SONA).

For years, the President has vaguely referenced basic income support as part of the government’s long-term vision. However, with the national budget announcement imminent and the current SRD grant regulations set to expire in March 2025, continued uncertainty is unacceptable. It is time for decisive leadership and concrete commitments to ensure that no South African in need is left behind.

ActionSA will continue to fight for an effective, sustainable, and dignified social support system that truly serves the people.

Issued by ActionSA Member of Parliament Dereleen James