Activists criticise social grant “savings”

The Universal Basic Income Coalition (UBIC) has criticised the 2026 Budget, warning that government’s efforts to generate billions of rands in savings in social grants risks leaving vulnerable people without support.

The Universal Basic Income Coalition has warned that government’s efforts to generate billions in savings in social grants risks leaving vulnerable people without support. Illustration: Lisa Nelson

In a statement earlier this week, the coalition said the country’s improved fiscal position was an opportunity to strengthen support for the most vulnerable. But instead “gains have been directed primarily to the middle class and the wealthy through increased allowances and tax relief”.

Social grants will increase slightly above the current inflation rate of about 3.5% from April. The Old Age Grant will rise from R2,315 to R2,400, while the Child Support Grant (CSG) will increase from R560 to R580. But UBIC says these increases do not compensate for below-inflation adjustments in previous years, particularly because food prices have risen faster than overall inflation.

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“The CSG, now set at R580, sits 32% below the food poverty line – the minimum amount of money required to meet the most basic nutritional needs if all income were spent on food – which is R855,” the coalition said.

“These are not abstract percentages, they translate directly into hunger. Caregivers tell us plainly: ‘The grant runs out long before the month does.’”

UBIC also criticised the government for not increasing the R370-per-month Social Relief of Distress (SRD) grant. The grant has only increased once in five years, by R20.

According to the National Treasury, about 26.5-million people are expected to receive social grants in the 2026/27 financial year.

Finance Minister Enoch Godongwana told Parliament that measures to tighten compliance and prevent social grant fraud will yield R3-billion in savings.

The South African Social Security Agency (Sassa) reviewed about 292,000 grants this year, which resulted in the cancellation of about 34,600 grants and reduced payments to about 8,600 disability and old age beneficiaries. This saved the government R36.4-million.

New applicants for grants must also undergo biometric verification.

The Treasury expects these tighter controls to result in fewer people receiving grants.

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UBIC worries that “an intensified review process, without a clear plan to address Sassa’s capacity limitations and without a credible contingency plan to support flagged beneficiaries, risks excluding millions from social protection”.

“Behind every budget line is a person, behind every ‘saving’ is a household calculating how much food they can go without,” UBIC said.

Comments from National Treasury, the Department of Social Development and Sassa will be included once received.

This article was originally published on GroundUp.