Civil society group Save SA urges Finance Minister Enoch Godongwana to raise the SRD grant, arguing that R370 is not enough for struggling South Africans.
Save SA Pushes for Higher SRD Grant as Budget 2025 Maintains R370
Civil society organization Save SA has strongly criticized Finance Minister Enoch Godongwana’s decision to keep the Social Relief of Distress (SRD) grant at R370 in his 2025 budget announcement. The group argues that this amount is inadequate given the rising cost of living and is advocating for an increase to at least R1,200 or R1,500.
Despite increasing other social grants, including old age and disability benefits, Godongwana left the SRD grant unchanged, extending it only until March 2026. His decision has caused backlash from organizations like Save SA and the Black Sash, which have long called for meaningful financial support for low-income South Africans.
SRD Grant vs. Rising Living Costs
South Africans continue to struggle with high food prices, transport costs, and inflation, making the R370 SRD grant insufficient to meet basic needs. Save SA and other advocacy groups argue that the grant should be increased to a livable amount.
“When we talk about SRD, you are giving people R370 per month — what can they do with that?” asked Save SA spokesperson Tebogo Mashilompane in an interview with Newzroom Afrika. “We expected the minister to increase it to at least R1,200 or R1,500.”
Many believe that an increase in the SRD grant would help alleviate economic hardships for millions of unemployed and vulnerable citizens.
Proposed VAT Hike Adds to the Burden
Adding to the controversy, Godongwana has also proposed raising the Value Added Tax (VAT) rate by 0.5 percentage points in both 2025 and 2026, which would bring it to 16% by the 2026/27 fiscal year.
Critics argue that a VAT hike would disproportionately impact lower-income households, particularly SRD grant beneficiaries, who already struggle to afford necessities. The Black Sash has accused the finance minister of using the SRD grant as an excuse to justify this tax increase.
“To say the SRD grant is the reason he is in trouble now is shocking. As a society, we should be wary of the minister’s language,” the organization said.
Corruption Concerns and Budget Priorities
Save SA and other civil society groups claim that the government has the financial resources to increase the SRD grant but is failing to prioritize it due to corruption and inefficiencies in state spending.
“The money is there — the problem is that the government is unwilling to address these issues,” Mashilompane stated.
He pointed out that the government’s tender system remains a major problem, with funds being mismanaged instead of being allocated to much-needed social relief programs.
Political Opposition to Budget 2025
As the budget proposal heads to Parliament for debate, it faces opposition from various political parties, including the Democratic Alliance (DA), a key partner in the ANC-led Government of National Unity (GNU).
Several lawmakers argue that the budget does not adequately address South Africa’s economic crisis and have vowed to challenge key aspects, including the VAT hike and SRD grant freeze.
The outcome of these discussions will determine whether any adjustments will be made to the SRD grant. For now, however, millions of struggling South Africans will have to make do with R370 per month.
Also read: Mantashe Defends Possible VAT Hike: ‘VAT Is Not a Poor People’s Tax’ Ahead of 2025 Budget Speech
