Government Set To Finalize New Basic Income Support Grant With Treasury Consultations Resuming This Month

Social Development Minister Sisisi Tolashe confirms March 2026 Treasury talks to finalize the new Basic Income Support grant for South Africans.

By: AXL Media

Published: Mar 5, 2026, 7:01 AM EST

Source: Information for this report was sourced from BusinessTech

From Survival To Sustainability

The long-discussed Basic Income Support grant is moving closer to reality as the Department of Social Development begins intensive consultations with the National Treasury in March 2026. Minister Sisisi Tolashe has confirmed that the department is currently refining the macroeconomic impact and implementation models for this new permanent fixture in the South African social safety net. Over the years, the concept has evolved from a universal basic income proposal into a more targeted support system designed to strengthen the link between government assistance and sustainable livelihoods. This shift aligns with President Cyril Ramaphosa’s previous commitments to establish a work-seeker’s grant that encourages economic participation among the unemployed.

Leveraging The Success Of The SRD Framework

The existing COVID-19 Social Relief of Distress grant has served as an essential testing ground for this permanent policy. According to the department, the SRD grant allowed the state to assess its administrative capacity and fiscal implications before committing to a long-term budget. To ensure a smooth transition, the SRD grant has been extended until March 31, 2027, with an additional allocation of 36.4 billion rand. This extension provides a necessary bridge while the new Basic Income Support policy is finalized and integrated into the broader employment and social protection strategies of the country.

A Focus On Economic Empowerment

A central pillar of the new grant is the integration of beneficiaries aged 18 to 59 into training, enterprise, and employment opportunities. Minister Tolashe emphasized that evidence suggests social assistance is most effective when beneficiaries can leverage it to improve their livelihoods through economic opportunities. By redesigning the grant to act as a tool for empowerment rather than just an instrument of survival, the government hopes to reduce long-term dependency on the state. This redesign is intended to be a comprehensive overhaul of how the state supports its 26.5 million total grant recipients, of which 8.2 million are currently on the SRD program.