South Africa’s relief grant: how it can be used to help young people into jobs

Kate Orkin | Ingrid Woolard | Maya Goldman | Murray Leibbrandt

THE COVID-19 pandemic worsened the unemployment crisis in South Africa. In the second quarter of 2021, unemployment rates were the highest ever officially recorded. Many people who lost their only source of stable income fell into poverty as a result.

Social grants provide income that helps people to survive the short term economic hardship of unemployment. In the long term, new opportunities must be created to get people back into work. However, National Treasury’s emphasis on fiscal restraint has led to debates about which of these policies to prioritise. This has been particularly evident in the debate around the extension of a grant introduced during the pandemic, known as the Social Relief of Distress grant.

Treasury extended the grant for another year in November 2022, but warned that financing the it would require additional revenue or reprioritising existing spending.

Much of the