The South African government has decided to end the R350 Social Relief of Distress (SRD) grant. SRD, which was one of the pandemic’s Essentials for Unemployed, and was turned into an operational emergency, as the government provided monthly cash relief. The SRD grant, which was supposed to be a one-time fix, will not be carried on as a stand-alone operation. To replace what for the month of August had been the SRD, a new social welfare plan called Universal Basic Income Grant (UBIG) is being set up by the government.
This means the emergency measures are being gradually abandoned in favor of a more permanent social safety net. The change will sweeping affect the millions of beneficiaries who are less directly social secure than the SRD grant.
Why the Government Is Ending SRD
SRD was a temporary measure that was meant to assist with the economic crisis caused by the COVID-19 pandemic. The state finances were drained after every extension the government had committed to giving. The government is of the opinion that the long-term model plus a new more sustainable, comprehensive one is the best way to go.
Officials state that the SRD was never intended to be a permanent solution. As such, the introduction of the new UBIG is justified by the fact that, among crisis relief, it is much more important to take care of the underlying socio-economic problems in the case they show their face, notwithstanding the fact that different programs operate on different sides of the fence.
What Is UBIG? Proposed Structure & Eligibility
Universal Basic Income Grant (UBIG) is the suggested successor to the Social Relief of Distress (SRD) and is planned as an initiative that would give regular and dependable aid to those who can be named as qualifying South Africans. Some of the most important aspects of UBIG are:
- Eligibility: Applicants must be South African citizens or permanent residents aged between 18 and 59 years.
- Income Requirement: Recipients should be unemployed or earning limited income, and should not receive major government support like UIF or NSFAS.
- Payment amount: The proposed monthly payment is expected to range between R999 and R1,200. (Final budget approval may adjust this figure.)
- Permanent Vs Temporary: Unlike the SRD’s temporary nature, UBIG, when launched, would be a permanent, continuous grant.
The expectations with the introduction of UBIG are the following three; that is the decrease in poverty, consumption stabilized, and a more reliable underpinning of support provided to the economically vulnerable.
Application Procedure & Implementation
The very first step when UBIG is rolled out will be a system that is completely digital and easy to operate. Applicants will have to go through SASSA’s website, where they will be provided an online portal to use. They will also have to submit identity documents, proof of being employed or unemployed, and confirm their bank account details.
After the application has been processed by qualified officials, SASSA will give its approval via SMS or online trackers. Payments will be made to the beneficiaries as soon as the new system becomes functional.
TImpacts of the SRD-to-UBIG Transition on the Beneficiaries
The shift from SRD to UBIG is projected to bring about a significant population increase in the UBIG program to about 13.8 million. Taking the new eligibility rules that are somewhat different for a number of families, steps towards possibly getting the benefits extended or the current level of payments kept stable would be another medium sectorial adjustment as well.
At the same time, changes to the verification process would be another happening that hard-hit beneficiaries would face the toughest time. Non-eligible of the new criteria imposed by UBIG would deprive the current SRD recipients of their support, but this could mean a gain for the others that will fall in line with the UBIG conditions.
Applicants have been advised to be active in following the official SASSA announcements regarding The application registration date, date of eligibility verification and transition timelines, to have all the relevant information at their disposal. It is important to keep the personal information and bank details updated.
Also Read: SASSA Biometric Verification 2025 – Step-by-Step Guide To Secure Your Grant.