On 29 October 2024, the Pretoria High Court will hear submissions in Institute for Economic Justice and Another v Minister for Social Development and Another in which SERI represents the Institute for Economic Justice (IEJ) and #PayTheGrants (#PTG). The IEJ and #PTG launched an application against the Minister for Social Development, and the South African Social Security Agency (SASSA) in July 2023, challenging regulations that unlawfully and unconstitutionally exclude up to 50% of applicants, who make up about 8 million people living in food poverty, from receiving the Social Relief of Distress (SRD) grant. 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 October 2023, National Treasury applied to intervene in the case, on behalf of the Minister of Finance, to oppose aspects of the relief sought.
In May 2020, at the height of the COVID-19 pandemic and the national state of disaster, the South African government introduced a Covid-19 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 been providing vital 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 data shows 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 grant has since been increased to R370 per month and has been included in the amended Regulations that administer the grant. Unfortunately, since the introduction of the SRD grant, the food poverty line has increased from R585 to R760 due largely to rising food inflation. As argued by IEJ and #PTG in a statement, "the SRD grant still has much less purchasing power in 2024 than it did in 2020, and is much less able to protect beneficiaries against hunger. If the SRD grant had merely kept pace with inflation it would have reached approximately R440 in April 2024."
The applicants submit evidence drawn from 79 individuals who have provided supporting affidavits that detail how they have been personally affected the unjust administration of the grant—forcing many into hunger. The applicants submit several reasons why eligible applicants 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.
- Read more about the case here.