South Africa's Supreme Court of Appeal is reviewing the constitutionality and affordability of the R370 per-month Social Relief of Distress (SRD) grant [1, 2].
The case represents a critical juncture for the country's social safety net. A ruling could determine whether the state must expand eligibility or if the Treasury can reduce spending to ensure fiscal stability.
The grant was introduced in 2020 [3] to provide a basic lifeline for the unemployed. In April 2024, the monthly payment was increased from R350 to R370 [3]. Currently, approximately 8.3 million people receive the payment [1], with the annual cost reaching just under R40 billion [1].
The legal challenge follows a High Court ruling that found the SRD system unconstitutional. The court found that the program excluded eligible individuals from receiving necessary aid [2]. This ruling puts the South African Social Security Agency (SASSA) under pressure to reform its application and verification processes.
Financial sustainability remains a primary point of contention. Economists said the Treasury cannot afford to maintain the grant at its current scale [1]. This fiscal tension is highlighted by the volume of applicants; more than 10 million applications were rejected during the 2025/26 financial year [4].
The proceedings are taking place in Bloemfontein [2]. The court must now balance the constitutional right to social security against the economic constraints of the national budget.
“The annual cost of the grant is just under R40 billion [1].”
This legal battle highlights the tension between South Africa's constitutional obligations to its poorest citizens and its macroeconomic constraints. If the court mandates a more inclusive system, the Treasury may be forced to reallocate funds from other sectors or risk increasing the national deficit. Conversely, a ruling in favor of the Treasury could leave millions of vulnerable citizens without a primary source of income.
