SRD R370 Grant to Become a “Livelihood Grant” — What Godongwana’s Budget Announcement Means for Beneficiaries
Finance Minister Enoch Godongwana has confirmed that the government is working to transform the SRD R370 grant into a “livelihood grant.” He revealed this at a media briefing ahead of his 2026 Budget Speech delivered in Parliament on Wednesday 25 February 2026.
What Was Announced
Godongwana told journalists that discussions are underway to redesign the SRD grant into something broader — a livelihood grant that goes beyond cash payments to include skills development, work opportunities, and support for productive activity.
“The final details will be outlined in the Medium-Term Budget Policy Statement after we have a better understanding of how the livelihood grant will work,” he said, per IOL.
This follows a commitment President Cyril Ramaphosa made in his 2026 State of the Nation Address (SONA) in February, where he said the SRD grant would be “redesigned.”
“This year, we will redesign the grant to more effectively support livelihoods, skills development, work opportunities and productive activity,” Ramaphosa said.
What This Means for Your R370 Payment Right Now
Nothing changes immediately. Your SRD R370 grant continues as normal.
The 2026 Budget has allocated R36.4 billion to extend the SRD grant until March 2027. This means the R370 grant will continue to be paid monthly for at least another year while the government works out the details of the livelihood grant redesign.
If you are currently receiving the SRD R370 grant, you do not need to reapply or take any action. Continue checking your status monthly at srd.sassa.gov.za as usual.
Background: How the SRD Grant Got Here
The SRD grant was introduced in May 2020 as a temporary emergency measure to help vulnerable South Africans during the COVID-19 pandemic. It was originally set to last six months. It has since been extended annually and increased from R350 to R370 per month in April 2024.
Since 2024 the government has been developing a Basic Income Support (BIS) policy, which would form the foundation of a more permanent income support programme. The Department of Social Development first submitted a draft BIS policy to Cabinet in November 2024, but Cabinet requested further work to strengthen the grant’s links to economic inclusion measures such as job placement and skills training.
The Department now aims to submit a revised BIS policy to Cabinet by March 2027 — which aligns with when the current SRD grant extension ends.
What a “Livelihood Grant” Could Mean
No official details have been published yet. Godongwana confirmed full details will only be outlined in the Medium-Term Budget Policy Statement (MTBPS) later in 2026.
Based on what Ramaphosa and Godongwana have indicated, the livelihood grant concept goes beyond a straightforward cash payment. The redesign is expected to link financial support to:
- Skills development programmes
- Work and employment opportunities
- Support for small-scale productive activity such as informal trading or community projects
The intent appears to be to create a grant that both provides immediate financial relief and creates pathways out of unemployment, rather than indefinitely extending a cash-only payment.
What Happens Next
The timeline based on current government statements:
- Now to MTBPS 2026: Government works out the design details of the livelihood grant
- MTBPS 2026 (expected October/November 2026): Full details of the livelihood grant design announced
- March 2027: Current SRD R370 grant extension ends
- From April 2027 onwards: The livelihood grant or a new permanent income support programme expected to take effect
This page will be updated as further details are confirmed. For official updates follow www.sassa.gov.za and the Department of Social Development at www.dsd.gov.za.
Frequently Asked Questions
Is the R370 SRD grant being cancelled? No. The grant has been extended until March 2027 with R36.4 billion in funding confirmed in the 2026 Budget. Your payments continue as normal.
What is the “livelihood grant”? It is the proposed redesign of the SRD grant into a broader support programme that includes skills development and work opportunities alongside cash payments. Full details will be announced in the Medium-Term Budget Policy Statement later in 2026.
Do I need to reapply for the SRD grant because of this announcement? No. Nothing changes for current beneficiaries right now. Continue checking your status monthly at srd.sassa.gov.za.
When will the livelihood grant replace the SRD R370? The government has indicated the redesign will be detailed at the MTBPS in late 2026. The current SRD extension runs until March 2027. Any new system would likely take effect from April 2027 at the earliest.
Will the livelihood grant pay more than R370? No official amount has been announced. The 2024 High Court ruling found that R370 was insufficient and ordered the government to progressively increase the grant in line with inflation, but the government has not yet implemented those changes.
Information on this page is sourced from official SASSA announcements and verified against www.sassa.gov.za. For official queries contact SASSA directly at www.sassa.gov.za or call 0800 60 10 11.
