The South African Federation of Trade Unions (SAFTU) notes the landmark hearing taking place in the Pretoria High Court today, regarding the unfair administration of the Social Relief of Distress (SRD, R370) grant. We wish to state our full support for the applicants in the case, the Institute for Economic Justice and #PayTheGrants and the remedies they are seeking. This long-anticipated case is critical not only for the future of the SRD grant itself, but for the realisation of socio economic rights in South Africa.
The Constitution requires that the government progressively realise the right to social assistance within available resources. Due to the structural lack of labour demand in our economy, millions of adults are shut out of the labour market and living in food poverty. The only social assistance they have access to from the state is the SRD grant, which despite being a lifeline, has been consistently underfunded and undermined by the agencies tasked with administering it.
Although 16-17 million adults are eligible for and in need of the grant, the government only allows it to go to 8.5 million per month. Barriers have been erected in the management of the grant which prevent millions in need from accessing it. Aside from a R20 increase this year, the grant has also not been adjusted for inflation since 2020, and its purchasing power has declined significantly.
The government has committed to transitioning the SRD grant into a comprehensive system of basic income support for all those who need it. SAFTU supports a universal basic income grant (UBIG) for South Africa, and calls on government to urgently progress its policy and stop undermining it.
SAFTU calls for access to the SRD grant to be gradually expanded to reach universal eligibility, and for the value of the grant to be progressively increased to the Upper Bound Poverty Line (UBPL). Attempts to target social assistance narrowly to the unemployed will be costly, counterproductive and difficult to enforce, and will disadvantage them from accessing the grants in between jobs, as movement into employment and unemployment is constant and fluid.
SAFTU therefore supports the UBIG, as both critical poverty and hunger relief for the 30 million who are living below the UBPL, and as a fiscal stimulus to the economy. To be a fiscal stimulus in the economy. This is based on the understanding that one of the problems of growth in South Africa is depressed consumer demand as a result of widespread poverty. This leads to lower production, lower growth, and higher unemployment. UBIG will help to turn around our economic crisis, provide sustainable livelihoods pathways, and improve job quality and wages for millions of people.
