CAPE TOWN – The Congress of South African Trade Unions (Cosatu) is calling on Finance Minister Enoch Godongwana to increase the R370 Social Relief of Distress (SRD) grant and adjust it for inflation.
In his State of the Nation Address earlier this month, President Cyril Ramaphosa announced that the grant would continue indefinitely.
The grant, which more than eight million South Africans depend on, was expected to end on 31 March 2026 but has now been extended until March 2027.
Cosatu parliamentary coordinator Matthew Parks said the grant, despite its imperfections, has been one of government’s successes.
“It has provided relief for 8 million people who have no source of income. It’s a lifesaver, but in the five years, it’s only been adjusted for inflation once,” Parks noted.
“Its value has been badly eroded by inflation. We think at least, we need to adjust it for inflation. We need to also raise it to food poverty line so it really can make a difference to people.
"Yes, it costs a lot of money, but it’s a high-impact intervention. In the broader scheme, the budget is quite a small amount. It also helps to keep people afloat.”
Parks said government’s long-term solution should focus on job creation. He suggested linking the SRD grant to skills development and employment opportunities to help beneficiaries enter the labour market.
“I think for today, at least adjust for inflation and over the next one to two years, raise it with food poverty lines.”