End to Covid relief grant sparks fears of humanitarian crisis

There is no budget to extend the R350 social relief of distress (SRD) grant beyond March.

This was announced by finance minister Enoch Godongwana during his Medium-Term Budget Policy Statement on Thursday, a move which sparked fears of a humanitarian crisis from civil society due to the high levels of poverty and unemployment in the country.

The grant has supported 9.5m people since its introduction during the pandemic that hit the country in March last year.

Godongwana hinted at possible interventions that may be introduced by the government but did not provide details.

“Overall, the SA government is acknowledged as having one of the most comprehensive and expansive social security systems in the world. There are ongoing discussions about the social safety net. Details on our interventions with regards to the social security net will be provided in the February 2022 budget,” Godongwana said.

There are currently 27.8m people, accounting for 46% of the population, who are social grant recipients.

The R350 grant was introduced by the government during the pandemic to protect people with no income as the economy shrank due to lockdown regulations.

Its introduction brought smiles to the faces of millions of people who often went to bed on empty stomachs.

There have been ongoing calls from civil society and unions for the government to maintain the grant and use it to build towards a basic income grant for the poor.

Economist Duma Gqubule, who has been calling for the basic income grant, said the move to end the SRD grant was a tragedy.

“When we stopped the grant in April, it took only nine weeks for us to see the worst violence and looting that this country has ever seen in postapartheid history. By ending this grant, they [government] are taking a dangerous gamble on the future stability of this country.

“We’ve got a humanitarian crisis. About 10m people went hungry in April and May this year. Children went hungry. We have to provide humanitarian support. We should have a pathway towards a basic income grant. We had hoped as civil society that the government would build on this social relief of distress grant and increase it to the full poverty line of R624 a month,” Gqubule said.