South Africa’s SRD grant sees a hike in applications, prompting concerns over long-term sustainability.
SASSA is grappling with an overwhelming surge in SRD grant applications in 2025. Reports indicate that more than 165,000 new applications are being processed monthly, placing immense strain on an already overburdened system. Experts warn that the government will need an additional R36 billion to sustain the grant as demand continues to rise.
Sharp Increase in SASSA SRD Grant Applications
Since its introduction in 2020 as a temporary COVID-19 relief measure, the SRD grant has become a critical source of income for millions of unemployed South Africans. However, recent figures from GroundUp and SASSA spokesperson Paseka Letsatsi reveal that applications have spiked dramatically.
- 9 million South Africans are currently receiving the R370 SRD grant.
- 168,071 new applications were submitted in January 2025 alone.
- The average monthly increase in applications stands at 80,000.
- 62% of applicants are aged between 18 and 35, highlighting youth unemployment concerns.
This significant rise has left SASSA struggling, with acting CEO Temba Matlou admitting that staff shortages are exacerbating the backlog.
Economic Implications: R36 Billion Required to Sustain the Grant
Economists are raising alarms over the financial feasibility of continuing the SRD grant in its current form. Analysts estimate that an additional R36 billion will be required to cover the increasing number of beneficiaries.
According to Stats SA, the highest number of applications come from:
- KwaZulu-Natal: 4.4 million
- Gauteng: 3.2 million
- Eastern Cape: 2 million
These figures align with high unemployment rates in these provinces, with Gauteng at 42%, KZN at 34%, and the Eastern Cape at 30%.
Government Faces Legal Battles Over SRD Grant Cap
The government has attempted to limit the number of successful applications to stay within budget. However, after losing a court case challenging these restrictions, it has announced plans to appeal the ruling. Despite this, the delayed Budget Speech confirmed that the SRD grant would be extended beyond March 2025.
What Lies Ahead for the SASSA SRD Grant?
The SRD grant was initially designed as a temporary measure, yet it has now become an essential social welfare program. With rising unemployment and increasing demand, the debate continues—should the SRD grant be extended indefinitely or phased out?
Also read: How a VAT Increase Could Shrink 2025 SASSA Grants
