R370 SRD Grant Extended To 2027 but No Increase Announced In 2026 Budget

The South African Government announced in the 2026 National Budget that they will continue the Social Relief of Distress (SRD) grant payments for one more year. The monthly grant payment will stay at R370. The Finance Minister Enoch Godongwana announced this information during his Budget Speech to Parliament. The government plans to use this extension as part of its social spending program which will operate throughout the upcoming year. 

What the Freeze Means for Beneficiaries

The SRD grant will continue supporting vulnerable South Africans who depend on this support but the beneficiaries will receive unchanged payments which they already received. The SRD grant which South Africa introduced in 2020 during the COVID-19 pandemic served as a temporary relief measure for individuals who lost their income because of lockdowns and the resulting economic disruptions. The grant supports more than 8.2 million recipients because it received multiple renewals which exceeded its original short-term plan. The grant has become an important component of South Africa’s social protection system.

ZContrast with Other Social Grants

The SRD grant will not receive inflation-based payment increases in April 2026, while most permanent social grants will receive such increases. The increases help beneficiaries manage their expenses because of increasing living costs. The following increases will take effect:

  • Old Age, Disability & Care Dependency Grants rising to around R2,400 per month.
  • War Veterans Grant increasing to approximately R2,420.
  • Child Support and Grant-in-Aid Grants rising to R580.
  • Foster Care Grant increasing to R1,295. 

The government uses these adjustments to protect the purchasing power of existing grants between inflationary periods while maintaining the current SRD grant value.

The Value Remained Fixed Because Of R370

The SRD grant freeze has created a contentious situation which needs resolution. Government officials have maintained that the grant value requires suspension because budget limits force them to prioritize maintaining fiscal stability for extended periods. The other group connected upcoming fiscal support to changes in national tax regulations. The Treasury proposed that social assistance funding expansion requires revenue growth and VAT rate changes although some elements of this proposal have faced opposition. 

Future Outlook for the SRD Grant

The SRD grant extension exists until March 2027 while officials still examine possible adjustments to its frozen amount. Government officials have indicated that the grant may be redesigned as part of planned reforms to social protection programmes. The Medium-Term Budget Policy Statement and other policy documents will provide complete information.

Also Read: South Africa Pensioners Relief Plan: Municipal Bills Paused For Three Months

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