President Ramaphosa Confirms 2026 SASSA Income Support Grants Will Proceed While Treasury Faces Funding Challenges in South Africa

South Africans may soon see a new income support grant from SASSA after President Cyril Ramaphosa confirmed its introduction in his recent State of the Nation Address (SONA).

While the announcement offers hope for millions of unemployed citizens, significant questions remain about how the National Treasury will fund the scheme and its potential impact on existing social grants.

What the 2026 SASSA Grant Will Look Like

The proposed 2026 SASSA income support grant is intended to replace the current temporary R370 SRD grant, which has been limited to about 8 million recipients despite 18 million eligible South Africans.

When fully implemented, the new grant could provide a more stable support system for the unemployed while integrating lessons from similar programs abroad.

Currently, roughly 20 million people already receive core grants through SASSA, including Old Age and Child Support grants, which has raised concerns about whether introducing a new grant could dilute funding or create competition between programmes.

Lessons from Other Countries

Looking internationally, countries like Brazil and Iran provide examples for South Africa.

Iran’s quasi-cash-transfer system offers about $40 per month, while Brazil’s Bolsa Familia supports 11 million families with conditional payments tied to school attendance and health checks, funded mainly through general taxation.

These programs highlight both the potential benefits and challenges of rolling out a nationwide income support system.

Funding Challenges

The National Treasury has warned that expanding grants to 18 million beneficiaries and increasing the value to account for inflation could cost up to R93 billion, far exceeding the current temporary SRD budget of R35 billion.

Without significant additional revenue streams—such as tax reforms, economic growth, or subsidies—balancing generosity with fiscal responsibility will be difficult.

Other challenges include administrative inefficiency, fraud, and corruption, which have already affected SASSA grants.

Last month, nearly 500,000 suspect grants were flagged for review, demonstrating the complexity of safely scaling the system.

Legal Context

Recent legal developments also add pressure.

Last month, a High Court ruling declared the existing SRD regulations unconstitutional, ordering the grant to expand to all 18 million eligible applicants.

The DSD, SASSA, and National Treasury have appealed, citing affordability constraints, which highlights the delicate balance between legal obligations, social welfare needs, and fiscal sustainability.

What’s Next?

All will be revealed in Finance Minister Enoch Godongwana’s 2026 Budget Speech on 18 February 2026, which is expected to outline exactly how the new grant will be funded, its value, and potential eligibility criteria.

The public will be watching closely to see if the government can deliver a workable scheme that helps the unemployed without undermining existing social grants.

Summary

The 2026 SASSA income support grant has been officially confirmed, offering hope to millions of South Africans who rely on social support.

However, key questions remain about funding, impact on existing grants, administrative capacity, and potential legal hurdles.

Lessons from countries like Brazil and Iran suggest that a carefully structured program could work, but South Africa faces a difficult balancing act between providing meaningful support and maintaining fiscal sustainability.

The nation now awaits clarity in the upcoming 2026 Budget Speech.