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Institute for Economic Justice and Another v Minister for Social Development and Another "SRD grant"

Social Relief of Distress (SRD) grant - Social Development - South African Social Security Agency (SASSA)

SERI represents the Institute for Economic Justice (IEJ) and #PayTheGrants (#PTG) in an application challenging regulations that unlawfully and unconstitutionally exclude millions of people living in poverty from receiving the Social Relief of Distress (SRD) grant. The respondents in the case are the Minister for Social Development, and the South African Social Security Agency (SASSA). The applicants contend that exclusionary procedures, adopted by the state, in administering the grant, together with the low grant value and low income threshold for eligibility, are unlawful, irrational, and in conflict with section 27(c) of the Constitution, which guarantees the right to social assistance. 

In May 2020, at the height of the Covid-19 pandemic and national state of disaster, the South African government introduced a Covid-19 Social Relief of Distress Grant ("SRD grant"), with a value of R350 per month. This was initially restricted to unemployed adults, and later extended to adults with little or no income. The SRD grant, which was extended well beyond the end of the national state of disaster, has provided critical relief to millions of poor South Africans. It has alleviated income poverty, reduced hunger, and stimulated the local economy. In a statement on 27 March 2023, President Ramaphosa acknowledged that the SRD grant "has lifted millions of people out of food poverty" 

The available information, including government data, confirms that at least 16 million people should qualify for the SRD grant, which is now available to persons who have an income below R624, regardless of whether they are unemployed. However, while in March 2023, approximately 14 million people applied for the grant, only 8.3 million of those applications were approved. At the peak of applications, in March 2022, close to 16 million people applied for the grant.

The applicants outline various reasons why eligible people are excluded from receiving the SRD grant, including: (1) the over-broad definition of income used to measure whether an applicant falls below the means-test threshold, (2) unlawful questions in the online application form, (3) the exclusionary online-only application process, (4) flawed bank and database verification processes, (5) a narrow appeals process that excludes relevant new evidence, (6) an arbitrary exclusion of qualifying applicants when funds are depleted, (7) a reduction in the grant's value over time, (8) an irrational and retrogressive income threshold, and (9) widespread and systemic non-payment of approved beneficiaries.

The applicants, alongside many civil society organisations, have repeatedly raised these impediments to access in good faith with government, in meetings and submissions over the last two years, in the hope that they would be resolved and rectified. Unfortunately, the barriers remain while the situation deteriorates further. 

Access relevant documents:

  • Minister of Finance's Heads of Argument (2 September 2024) here.
  • DSD and SASSA Heads of Argument (2 September 2024) here.
  • Applicants' Heads of Argument (5 August 2024) here.
  • Applicants' Replaying Affidavit (26 March 2024) here.
  • Department of Social Development's (DSD) answering affidavit (2 November 2023) here.
  • South African Social Security Agency's (SASSA) supporting affidavit (13 November 2023) here. 
  • Minister of Finance’s answering affidavit (21 December 2023) here.
  • Read the detailed account of the applicants’ argument here.
  • Access the Notice of Motion here (21 July 2023).
  • Access the Founding Affidavit here (21 July 2023).