Basic Income Grant implementation postponed again

The Citizen

06-06-2025

The department's target for the current financial year is to table the Basic Income Support policy to Cabinet for approval.
The implementation of South Africa's Basic Income Grant has been delayed once again, with the Department of Social Development announcing that further consultations are required before the policy can be finalised.
The department presented its progress report to the portfolio committee on social development on Wednesday, outlining the ongoing challenges and next steps in developing the Basic Income Support policy.
Despite more than two decades of policy development, the Basic Income Grant remains elusive, with approximately 9.2 million people currently dependent on the Covid-19 Social Relief of Distress Grant and 19.2 million beneficiaries across the South African Social Security Agency's (Sassa) other programs.
The department has been working to create opportunities for grant-dependent individuals while navigating concerns about affordability and sustainability.
Latest Basic Income Grant policy developments
The Department of Social Development has been actively working on the Basic Income Support policy, with the first draft presented to the social protection, community and human development cluster Cabinet committee on 26 November 2024.
However, the committee directed that additional consultations be conducted with internal members, with a particular focus on the policy's affordability and its linkages to economic opportunities.
Following this directive, an interdepartmental workshop was organised on 31 March 2025 to discuss the revised document.
During this meeting, all members agreed on the necessity of identifying ways to connect the grant with employment and sustainable livelihood opportunities targeted at the economically active population.
The meeting acknowledged that the labour market, especially public employment initiatives, would not be able to absorb all current Social Relief of Distress beneficiaries.
Deputy director-general Brenda Sibeko informed members of parliament (MPs) that the policy has been revised again and could potentially be approved within a year.
'If the policy is approved in the current financial year, then it means that after that, we have to write the law that makes the basic income support to be a permanent income support policy like the other grants,' she explained.
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Ongoing consultations and timeline
A second interdepartmental workshop is planned for the end of June 2025, which will be followed by bilateral meetings with the Presidency, Department of Labour, and National Treasury.
The department intends to approach the committee in the second quarter of the 2025/26 financial year to request Cabinet consideration of the revised draft Basic Income Support policy.
'Once the consultations are concluded, the department will approach the SPCHD Cabinet Committee again in the second quarter of the 2025/26 financial year, to request Cabinet to consider the revised policy, and if approved, publish it for public comments,' the department explained.
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Parliamentary frustration mounts
MPs expressed growing frustration with the prolonged delays in developing a comprehensive Basic Income Grant policy.
EFF MP, Noluvuyo Tafeni, voiced this concern directly, asking: 'When was the Basic Income Grant policy proposal first made? It was about some 30 years back, and there is still no progress.'
The Basic Income Grant has indeed been on the country's policy agenda for more than 20 years, with the first proposal dating back to 1998.
A technical proposal was subsequently drafted in 2002, but it failed to gain Cabinet approval.
Financial challenges and sustainability concerns
National Treasury has expressed significant concerns about the affordability and sustainability of introducing a Basic Income Support policy, given the country's high unemployment rate and current fiscal position.
The department is working with various stakeholders to identify alternative ways to strengthen the implementation of the current Social Relief of Distress grant while creating pathways for beneficiaries to transition to other economic opportunities.
Despite these challenges, the committee heard that the department has received approval to extend the Social Relief of Distress provision until the end of March 2026, with a budget of R35 billion.
The department has proposed that the Social Relief of Distress grant be made permanent, with a phased approach to increase benefits progressively.
The proposed entry-level Basic Income Support grant would be set at the Lower Bound Poverty Line, with long-term plans to eliminate poverty at the Upper Bound Poverty Line.
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Basic income grant supporting infrastructure and pilot programs
While policy development continues, the Department of Social Development is working on several parallel initiatives to support the eventual implementation of the Basic Income Support policy.
The department said it was collaborating with stakeholders to assist the South African Social Security Agency in enhancing system interoperability to improve efficiency in data-sharing for both eligibility assessment and economic linkages.
Additionally, the department, along with Sassa and partners, is piloting ways to link grant beneficiaries to employment activities.
An interdepartmental task team, including key departments such as National Treasury, the Presidency, Higher Education and Training, and Public Works, is working on various pathways to improve access to training, employment, and entrepreneurship support to reduce reliance on social grants as the only pathway out of poverty.
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Next steps and legislative process
The department's target for the current financial year is to table the Basic Income Support policy to Cabinet for approval.
Should such approval be granted, the department will need to amend the Social Assistance Act to introduce a new social grant category.
While the formulation of the amendment can be done relatively quickly, the timing of the legislation and its passage will depend on how rapidly Cabinet approves the draft bill, which will then be tabled to Parliament for processing.
During this legislative process, it will be necessary for the Social Relief of Distress grant to be extended beyond March 2026 to ensure the continuation of income support.
'In order to ensure stability during this consultation period, the department will consult National Treasury for the SRD provision to be extended until the legislative process is complete, to ensure that its beneficiaries are protected from extreme poverty and vulnerability,' the department stated.
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