COSATU says it is pleased that President Cyril Ramaphosa has endorsed the labour federation’s call to extend and increase the Social Relief Distress Grant (SRD) that has provided relief to 8 million unemployed persons.
During the State of the Nation Address, Ramaphosa announced that government will continue with the R350 SRD Grant which was extended to March 2024.
Ramaphosa said that work is also underway to develop a mechanism for a targeted Basic Income Support (BIS) for the most vulnerable, within the country’s fiscal constraints.
The labour federation said that the grant’s administrative challenges needed to be urgently resolved, and all 12 million unemployed persons need to have access to it.
Government introduced the SRD Grant in May 2020 as a temporary measure to respond to the needs of the most vulnerable, who were affected by COVID-19 induced lockdown measures.
“The grant also needs to be increased to the food poverty line and its participants linked to skills development and job opportunities,” said COSATU spokesperson, Sizwe Pamla.
“The nation cannot afford to leave an army of unemployed and despondent people behind.”
Further details on the grants will be detailed in the 2023 Budget, set to be delivered by Finance Minister Enoch Godongwana on 22 February.
In December 2021, the Department of Social Development (DSD) launched the Expert Panel Report on basic income support.
A team of experts on BIS recommended that government gradually implement a basic income grant, starting with the existing COVID-19 Social Relief of Distress Grant being institutionalised and forming a platform for an expanded system of BIS.
The expert panel was established as part of an International Labour Organisation (ILO) initiative, together with the DSD, to examine the salience and feasibility of Basic Income Grant options for South Africa.
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