Is SRD Grant R624 or R700 true?

SRD Grant R624 or R700: Many residents in South Africa (around 8 million recipients) receive the social relief distress grant (SRD) grant of R350 each month, a “temporary” grant for people between 18 and 60 years old who do not have the financial means to support themselves.

The PMBEJD estimated that 25% of the population in the country (around 13.8 million people), live below the food poverty line of R663 a month. Therefore it is clear that the SRD grant of R350 per month is nowhere near enough to sustain anyone, let alone a family.

Is the SRD R350 Grant being increased to R624 or R700?

The latest Household Affordability Index by the Pietermaritzburg Economic Justice & Dignity group (PMBEJD) (released on 28 February 2023), shows that for February 2023, the group’s Household Food Basket came to R4 928.34. And this amount is increasing at an alarming rate!
 

Is the R624 Grant true?

All of that being said, there is a lot of talk about the SRD grant being increased to R624, but this information is NOT true. The SRD grant is NOT being increased, however the grant is being extended until 31 March 2024.

There is also news floating around social media that the SRD grant is being increased to R700 (a 100% increase from the current R350) – this is unfortunately also NOT TRUE.

The confusion of the R624 amount, is that SASSA increased the means test threshold to R624 per month – this means that you must NOT earn more than R624 per month in order to apply for the SRD grant (effective from August 2022). Previously, the maximum income amount to qualify for the grant was R350. By increasing the maximum income threshold, means more cash-strapped South Africans are able to qualify for the Covid-19 grant.

Why can’t the SRD grant be increased to R624 per month?

The SRD grant was initially introduced as a temporary grant in 2020, amidst the Covid-19 pandemic that saw many job losses. The grant was a way for the South African government to temporarily assist households in dealing with the pressures of the pandemic, but may likely become a permanent feature of the social wage. SRD Grant R624 or R700 true

SRD Grant R624 or R700

With between 7.5 and 8 million recipients receiving the R350 SRD grant each month, this equates to more than R2.7 billion of the national budget spent each month. The continuation of the grant is placing increasing pressure on the national budget, according to Momentum Investments.

READ: Check my SRD Grant status

According to the department of Social Development, around 60% of the government’s budget is spent on social wages, across the various types of social security grants which are paid to more than 25 million people in South Africa each month. SRD Grant R624 or R700 true

Therefore, it the government of South Africa simply cannot afford to increase the SRD grant to R624 each month. The way forward is to create employment opportunities for the people of South Africa, so that they can support themselves and their families!

The Bank of America predicts that the South African government may be forced to stop extending the grant and link other grants to inflation, as a result of the budget being stretched thinner by each month. SRD Grant R624 or R700 true