Fate of Millions Hangs in Balance: South Africa's R370 SRD Grant Battle Reaches Supreme Court

Millions of vulnerable South Africans could remain excluded from the R370 Social Relief of Distress (SRD) grant, depending on the outcome of a significant appeal by the government. The Supreme Court of Appeal (SCA) in Bloemfontein is currently hearing the government’s challenge to a Pretoria High Court judgment, which found several aspects of the SRD grant regulations to be unconstitutional and unfairly restrictive to access social assistance. This pivotal case was initiated by the Institute for Economic Justice (IEJ) and the #PayTheGrants campaign, with the Socio-Economic Rights Institute of South Africa (SERI) representing the applicants.

The High Court ruling, delivered in January 2025 by Judge Leonard Twala, determined that the government had employed administrative and procedural requirements that unjustly limited access to the grant. A primary concern highlighted was the mandatory online application process, which the court found could disproportionately exclude vulnerable individuals lacking reliable access to smartphones, data, or the internet. The judgment also questioned the government’s criteria for defining income and financial support when assessing eligibility for the grant.

Furthermore, the High Court declared that the R624 monthly means-test threshold and the R370 grant amount were inadequate, ordering the government to devise a plan for their progressive increase. Crucially, the court also found that the SRD grant, initially introduced during the Covid-19 pandemic and set at R350 before increasing to R370 in April 2024, had effectively transitioned into a permanent form of social assistance rather than remaining a temporary intervention.

The government is appealing the judgment in its entirety, contending that the High Court overstepped its powers by essentially transforming a temporary Covid-era measure into a permanent income grant for unemployed citizens. The state argues that the SRD grant was intended as an emergency measure, and decisions regarding its continuation and funding fall within the purview of the executive and Parliament. The government also disputes the assertion that online-only applications are inherently exclusionary, citing over 15 million applications processed digitally and more than 8.7 million eligible people who have received payments.

The financial implications of upholding the High Court ruling are a central point of the government's appeal. Treasury has issued warnings about the substantial pressure on public finances if the grant were to be expanded to cover a significantly larger number of eligible people and its value increased. Estimates suggest that extending the grant to 18 million people and adjusting its value in line with inflation could necessitate an additional R93.5 billion annually. Consequently, the state has requested the SCA to overturn the High Court's findings. As an alternative, Finance Minister Enoch Godongwana has requested a suspension of the implementation of certain aspects of the ruling for a period of at least 12 months, and preferably 24 months, should the appeal fail.

SERI head of litigation Nkosinathi Sithole expressed optimism that the SCA would dismiss the government’s appeal and uphold the High Court ruling, noting that a confirmation of the judgment by the Constitutional Court could ultimately enable millions more South Africans to access the grant. The IEJ and #PayTheGrants campaign also emphasize that the R370 grant and R624 threshold have not kept pace with the escalating cost of living, pointing out that the food poverty line has risen to R855 per month, indicating a significant shortfall in meeting basic food requirements. The outcome of this appeal will profoundly impact how the SRD grant is administered and who can access it, potentially affecting millions of individuals currently excluded.