Latest News On Sassa COVID-19 SRD Grant For Today 27th October 2022

Latest News On Sassa COVID-19 SRD Grant For Today 27th October 2022

Welcome to Flippstack, in this article we will be walking you through the latest update on the South African Social Security Agency (Sassa) COVID-19 Grant making the headlines today. Latest News On Sassa COVID-19 SRD Grant 27th October 2022

R350 Social Grants Extended for Another Year

The Covid-19 Social Relief of Distress (SRD) Grant – also known as the R350 social grant – is expected to be extended to the end of March 2024.

This is as the government continues to consider options for a replacement for the grant, with no decision taken yet on how the replacement will be financed.

Finance Minister Enoch Godongwana announced the extension of the grant during his presentation of the Medium Term Budget Policy Statement in Parliament on Wednesday afternoon.

You may also want to read SASSA Announces Grant Payment Dates For October, November And December 2022

“The SRD grant was introduced in May 2020 as a temporary measure to respond to the needs of the most vulnerable, who were affected by [Covid-19 induced] lockdown measures. It has been extended several times since then. Discussions on the future of the grant are ongoing and involve very difficult trade-offs and financing decisions,” he said.

As a result of the extension of the SRD grants, other social grants – such as old age grants and disability grants – will increase lower than inflation.

According to Treasury, the SRD grant is expected to grow by at least 8.8% every year, and its financial implications could reach some R64.9 billion in the 2030/31 financial year – casting an impact on the sustainability of the public purse.

In light of this estimation, Godongwana said an indefinite continuation of the grant will have a serious impact on the stability of the public purse.

You may also want to read Sassa Explains Reasons For High Rejection Rate For R350 Grant

Despite the provision made in this budget, I want to reiterate that any permanent extension or replacement will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two- Godongwana said