SA Allocates R302 Billion to Strengthen Social Protection and Fight Poverty

Government officials stated that social grants remain one of the country’s most important tools for poverty reduction and social stability.

The Department of Social Development has tabled a massive R302 billion Budget Vote for the 2026/27 financial year, reaffirming the South African government's commitment to strengthening the country's social protection system amid growing economic challenges, inequality and rising living costs.

Presenting the budget in the National Assembly on Tuesday, Acting Social Development Minister Sindisiwe Chikunga said the allocation comes at a critical time when households continue to face mounting pressure from:

• Rising food prices

• Fuel costs

• High cost of living

• Global geopolitical instability

• Persistent unemployment and inequality

The budget places major focus on:

• Social grants

• Poverty alleviation

• SASSA modernisation

• Gender-based violence interventions

• Basic income support planning

R293 Billion Allocated for Social Grants

The largest portion of the budget — approximately:

R293 billion

— has been earmarked for monthly social assistance grants supporting:

• Children

• Older persons

• Persons with disabilities

Government officials stated that social grants remain one of the country's most important tools for poverty reduction and social stability.

The Department highlighted that millions of vulnerable South Africans continue to rely on social grants as their primary source of income amid difficult economic conditions.

SRD Grant Extended Until March 2027

Government also confirmed the continuation of funding for the:

Social Relief of Distress (SRD) Grant

which has now been extended until:

March 2027

The SRD grant is expected to support approximately:

8 million working-age South Africans

who are currently unable to support themselves financially.

An additional:

R36.4 billion

has been allocated to sustain the SRD grant programme, including funding for:

• Administrative costs

• Staffing adjustments

• Operational support within SASSA

"We welcome the grant increases announced by the Minister of Finance, while acknowledging that the Child Support Grant remains below the food poverty line," Chikunga said.

Government Working on Long-Term Basic Income Support Policy

The Department revealed that work is underway on a broader:

Basic Income Support policy framework

Officials confirmed that costing models for the policy have already been finalised following Cabinet consideration of the draft framework.

Government is also exploring ways to better integrate social protection with employment opportunities and sustainable livelihood programmes.

Pilot projects are already underway in:

• Gauteng

• KwaZulu-Natal

• Free State

linking Child Support Grant recipients to economic opportunities and employment pathways.

"We intend to expand this initiative to all other provinces in the current financial year and beyond," Chikunga said.

SASSA Modernisation Saves Over R1 Billion

A major highlight of the budget speech was the progress made in modernising systems at the:

South African Social Security Agency (SASSA)

The Department reported that intensified grant reviews and improved administration systems have already generated savings of more than:

R1 billion

These savings have reportedly been redirected toward other government priorities.

Major Digital Reforms Rolled Out

Key SASSA reforms announced include:

• Full rollout of biometric beneficiary systems across all 432 SASSA offices

• Registration of nearly 1 million new beneficiaries on the biometric platform

• Expansion of queue management systems to 378 offices

• Continued rollout to remaining offices during the current financial year

Officials stated that the reforms are aimed at:

• Reducing fraud

• Improving service delivery

• Strengthening accountability

• Enhancing beneficiary experience

Government Strengthening Cybersecurity and Conducting Lifestyle Audits

As part of its digital modernisation programme, the Department said it is strengthening:

• Cybersecurity systems

• Data protection mechanisms

• System integrity controls

to safeguard beneficiary information.

Chikunga also announced that the government will expedite:

Lifestyle audits for SASSA employees

particularly officials working in high-risk areas such as:

• Grant administration

• Finance

• Information and Communications Technology (ICT)

• Procurement

The move is aimed at tackling corruption and improving accountability within the agency.

Social Grants Linked to Improved Education Outcomes

The Minister highlighted the positive developmental impact of social grants, particularly the:

Child Support Grant

According to the Department:

• Of the 729,650 learners who wrote matric in 2025, 84.2% were Child Support Grant beneficiaries.

• The matric pass rate among grant recipients increased from 74% in 2021 to 84.9% in 2025.

• Bachelor pass rates improved from 33.2% to 41.9%.

Officials stated that these outcomes demonstrate the wider benefits of social protection programmes beyond poverty relief.

Many grant beneficiaries are reportedly progressing to:

• Higher education

• NSFAS-supported tertiary studies

• Labour market participation

Government Intensifies Fight Against Gender-Based Violence

The Department also placed major emphasis on combating:

Gender-Based Violence and Femicide (GBVF)

which has been classified as a:

National disaster

Government currently supports:

142 shelters nationwide

covering:

47 districts

Officials noted that five districts still lack shelter access and will be prioritised during the current financial year.

Gender-Based Violence Command Centre Receives 39,000 Calls

The Department reported that the:

Gender-Based Violence Command Centre

has already received more than:

39,000 calls

since the beginning of the year.

Chikunga strongly condemned recent violent incidents, including alleged mob justice cases, and called for:

• Stronger law enforcement responses

• Increased public reporting of abuse

• Greater community vigilance

The Minister encouraged victims and communities to continue using the toll-free reporting lines for support and intervention.

Government Reinforces Commitment to Social Protection

Officials stated that the 2026/27 Budget Vote reflects government's broader commitment to:

• Reducing poverty

• Expanding social security

• Strengthening vulnerable communities

• Improving public service delivery

• Supporting inclusive development

Despite fiscal pressures and economic challenges, social protection remains one of the largest expenditure priorities within government.

Rising Economic Pressures Driving Demand for Social Assistance

The budget comes amid continuing economic strain affecting households across South Africa, including:

• High unemployment

• Inflationary pressures

• Food insecurity

• Rising energy costs

• Slow economic growth

Experts note that the expansion of social protection systems is increasingly viewed as critical for maintaining social stability and reducing inequality.

The Department indicated that future reforms will continue focusing on:

• Sustainable income support

• Digital transformation

• Improved accountability

• Poverty reduction strategies

• Stronger links between social protection and employment