Government continues to weigh options to replace R350 grant, Ramaphosa tells NCOP

The government must follow a tight balancing act as it weighs several options that will eventually replace the R350 social relief of distress grant introduced during the Covid-19 pandemic.

President Cyril Ramaphosa told the National Council of Provinces sitting yesterday that while supporting the poor was a priority, the government could not be reckless in solving the problem.

“The grant will be maintained until March 2024, while the economy continues to recover from the impact of the pandemic.

“Various options are being explored, taking into account affordability, financing options and efficacy in addressing poverty.

“We are looking at how we move beyond the SRD grant.

“There have been calls for the basic income grant to be introduced which will support a number of people, and that is being considered,” Ramaphosa said.

He was asked whether the government was considering making the (R350) social relief of distress grant permanent or whether it had an alternative long-term plan that would address poverty.

He said the government also took into consideration the views from financial institutions such as the International Monetary Fund.

“Our people are living in poverty and are unemployed, and that is a primary consideration, but at the same time so as to not be reckless, we have to look at everything that we do within affordable means.

“So it is a balance that we will have to have.”

He also said it was important to develop a mechanism to ensure beneficiaries ended up in permanent employment.

“There is concerted effort within government to link current beneficiaries to various economic opportunities such as skills development, sustainable livelihood programmes and job creation initiatives.”

SA already provided extensive social security support through grants that reach more than 46% of the population, he said.