South Africa’s new Basic Income Support grant is moving closer, but it is not ready for rollout yet.

The Department of Social Development wants to finalise the policy for the new grant by March 2027. This would allow government to start the legal process needed to introduce the grant in the 2027/28 financial year.

The Basic Income Support grant is expected to replace the Social Relief of Distress grant. The SRD grant was first introduced during the COVID-19 pandemic as temporary support for struggling South Africans.

It started at R350 per month and was later increased to R370.

SRD Grant Extended Again

The SRD grant was only meant to run for six months. But it has since been extended several times.

More than 8 million people are now dependent on the grant, according to the Department of Social Development.

The grant costs government an estimated R35 billion to R40 billion every year. In the 2026 budget, it was given another R36.4 billion to keep payments going until 31 March 2027.

For now, beneficiaries will continue receiving R370 per month.

Policy Still Being Drafted

The new Basic Income Support policy is still being worked on.

A draft policy was first presented to Cabinet in November 2024, but it was sent back to the department for more work.

Government wants the new grant to do more than just provide income support. The department said it is working on ways to link the grant to job-seeking activities and other economic opportunities.

The plan is to target people of working age and help them move into more sustainable livelihoods where possible.

What Happens Next

The Department of Social Development and the Presidency have already presented the updated policy to National Treasury.

The department now plans to continue engagements with Treasury in June and July 2026.

The draft policy is expected to be updated in July 2026 before being sent for an impact assessment. In August 2026, it is expected to go to Cabinet, where approval may be requested to publish it for public comment.

Government then plans to update the policy between September 2026 and February 2027.

If everything stays on track, the final policy could go to Cabinet in March 2027.

After that, government would need to draft changes to the Social Assistance Act before the new grant can be implemented.