R59.6 billion set aside for Sassa and SRD grants

A social development department budget of R294 billion for the 2025/2026 financial year has been tabled in the National Assembly by Minister Nokuzola Sisisi Tolashe , with a big portion allocated to social grants for 27 million beneficiaries.

Nearly R60 billion or 20,27% of the budget has been set aside to cater to the South African Social Security Agency (Sassa) and Covid-19 Social Relief of Distress (SRD) grants.

The budget allocation comes at a time of severe economic constraints and rising unemployment, with approximately 45% of South Africa’s population dependent on social grants as their primary source of income.

Speaking in Cape Town, Tolashe emphasised that R284 billion of the total budget would go directly to monthly transfers for social assistance beneficiaries.

The minister highlighted the critical importance of the social grant system in supporting vulnerable populations, noting that over 19 million social grants are distributed monthly without fail.

Honoring lives lost and celebrating progress

The minister opened her address by acknowledging recent tragedies, including flood victims in the Eastern Cape and victims of gender-based violence.

She specifically remembered several women who lost their lives to violence: “Olorato Mongale, Uyinene Mrwetyana, Tshegofatso Pule, Nosicelo Mtebeni, Karabo Mokoena. These are just a few of some of the known victims of gender-based violence.

“We remember their names as a constant reminder of the work that remains to be done.”

Tolashe also paid tribute to former Deputy President David Mabuza, who passed away recently, and invoked Nelson Mandela’s legacy as the country celebrates what would have been his 107th birthday.

She quoted Mandela’s enduring message: “As long as poverty, injustice and gross inequality persist in our world, none of us can truly rest.”

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Addressing persistent inequality

The minister acknowledged the stark reality of South Africa’s inequality.

“Just as we cannot deny the progress South Africans have made over the last 30 years, nor should we diminish the severe challenges that we continue to face,” she referenced President Cyril Ramaphosa’s observation.

Tolashe noted that South Africa remains tagged as the most unequal country in the world according to the Gini coefficient, with the nation essentially operating as “two nations, with race a key driver of high inequality”.

The budget presentation revealed that more than 13 million children receive the Child Support Grant, while over 4 million elderly citizens benefit from the Old Age Grant.

An additional R34.9 billion has been allocated to the SRD grants programme.

Tolashe noted that the SRD grants support more than 8 million unemployed beneficiaries aged 18-59 monthly.

Sassa modernisation and fraud prevention

Sassa received R24.7 billion for grant administration over the Medium-Term Expenditure Framework period.

Tolashe outlined ambitious modernisation plans, including the rollout of queue management systems, self-service kiosks and biometric systems to improve service delivery.

The minister emphasised the department’s commitment to protecting the integrity of the social assistance system.

“We are currently conducting a review process in line with the social assistance regulations,” she explained.

She added that the process ensures “paying the right social grant, to the right person, at the right time and place”.

This review process has already generated annual savings of over R1 billion.

Tolashe allocated over R200 million over the MTEF period specifically for fraud detection and prevention, stating: “We are determined to ensure that those who steal money meant for the poor to feed their greed, are exposed and held accountable.”

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Sassa SRD to replace basic income support

The minister announced plans to replace the temporary Covid-19 SRD with a permanent Basic Income Support (BIS) programme.

This new initiative will include linking beneficiaries to employment and sustainable livelihood opportunities, drawing on a successful pilot project conducted with the Finmark Trust.

The National Development Agency (NDA) receives R216 million for grant funding to civil society organisations, with a focus on supporting local economic development and job creation.

The agency’s turnaround strategy has proven successful, raising over R60 million to supplement its budget and establishing nine community-owned enterprises across 22 wards.

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Combating gender-based violence

The budget allocates R102 million to accelerate shelter services, particularly in the 30 identified gender-based violence hotspots.

Currently, six of the country’s 52 districts lack shelter facilities entirely.

According to Tolashe, the Gender-Based Violence Command Centre is now fully operational, providing 24/7 support through a free emergency line (0800 428 428).

Cabinet’s recent decision to re-establish the inter-ministerial committee on gender-based violence and substance abuse will support the 90-Day Acceleration Programme.

Tolashe stressed that “each one of us has an important role to play in confronting head on, the harmful social norms that perpetuate this scourge, in supporting survivors and holding perpetrators accountable.”

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Legislative and organisational reforms

The department plans to introduce the Victim Support Services Bill and the Children’s Amendment Bill during the current financial year.

Tolashe highlighted significant progress in filling critical leadership positions, including the director-general, deputy director-general for welfare services and chief financial officer posts.

The minister also addressed the need for more social service professionals, acknowledging that the country is off track to meet the National Development Plan target of employing 55 000 social service professionals by 2030 due to financial constraints.

She condemned the killing of social workers who have become vulnerable to criminal attacks due to the nature of their work.

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NPO sector reforms

The department has begun deregistering non-compliant non-profit organisations, issuing over 50 000 notices and deregistering more than 15 000 NPOs.

However, Tolashe noted an uptick in compliance, with more organisations submitting required reports.

She said the department plans to reduce bureaucratic barriers by implementing an automated online application and monitoring system.

R137 million has been allocated over the MTEF period to prevent money laundering and terror financing risks in the NPO sector, aligning with Financial Action Task Force recommendations.

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