South Africa: Government to Start Funding Talks for New Basic Income Grant

4 March 2026
Scrolla (Johannesburg)
By Rorisang Modiba
  • Social development minister Sisisi Tolashe says the new Basic Income Support grant will link to job-seeking, training, and small business opportunities.
  • About 8.2 million South Africans currently receive the Covid-19 Social Relief of Distress grant, which runs until 31 March 2027.

The government plans to introduce a new Basic Income Support (BIS) grant for millions of South Africans who currently depend on the Covid-19 Social Relief of Distress (SRD) grant.

The new grant will support job-seeking, training and small business opportunities to help people not only survive but also find ways to earn a living.

The Department of Social Development (DSD) says it will begin consultations with the National Treasury in March 2026 to secure funding for the new grant.

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Social development minister Sisisi Tolashe said the department is refining its economic impact studies and plans for how the grant will work.

The grant was originally called the Basic Income Grant (BIG), but the name changed as the government realised it could not afford a universal income for everyone.

The government used the SRD grant as a testing ground to assess costs and administrative systems before introducing a permanent grant. About 8.2 million people currently receive the SRD grant.

The government extended the SRD grant until 31 March 2027 at R370 per month and allocated an extra R36.4-billion for this period.

But funding for the SRD drops sharply after 2027. President Cyril Ramaphosa announced during the State of the Nation Address that a redesigned BIS grant will be introduced in 2026.

Finance Minister Enoch Godongwana said in the 2026 Budget that social grants remain the biggest part of social development spending. About 26.5 million South Africans receive social grants overall.

The DSD says final consultations on the new grant policy are expected to be completed in March 2026. Funding sustainability remains the biggest challenge, due to slow economic growth and limited government revenue.

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