ANC promises Basic Income Grant if they are reelected

The ANC promises a Basic Income Grant by 2026 if reelected following the 29 May vote. Speaking at a rally on Wednesday 22 May 2024, the party insisted that the long-discussed Basic Income Grant will come to be in two-years’ time, if and when it is reelected.

ANC PROMISES A BASIC INCOME GRANT BY 2026

According to Business Live, the Basic Income Grant will act as a universal income grant for the unemployed. It will effectively replace the existing R370 Social Relief of Distress grant (SRD) which came to be at the height of the COVID-19 pandemic.

Stats SA has just revealed new data that shows 50% of South African households already receive government grants. Not to mention the 32.9% unemployment rate that has increased by 0.8% (300 000 people) in just six months.

PRO-POOR STATE

And let’s not forget President Cyril Ramaphosa has also signed the National Health Insurance (NHI) bill into law. This, too, promises taxpayer-funded healthcare for every citizen in the country. All signs point towards Mzansi becoming a heavily social-welfare-driven state.

Now, with less than a week to go to the 29 May General Election, the ANC promises a Basic Income Grant by 2026. There’s been no word, however, on how much it will pay. Suggestions range from anywhere between R1 000 to R1 500. However, looking at the current budget allowance, those expecting a big payday for being unemployed may be disappointed.

URGENCY ON POLICY

This week the ANC said it was “committed to finalising a comprehensive policy for the Basic Income Grant within two years of a new ANC administration. We understand the urgency of providing certainty and coherence in this matter. We’ll address the challenges faced by the SRD grant and fulfilll our commitment to the wellbeing and prosperity of all South Africans,” said the party.

Furthermore, the party confirmed it will supplement and not replace other social welfare measures that are already in place. This refers to South African Social Security Agency Old-age, Childcare, Disability and War Veterans grants.

HOW WILL IT BE FUNDED?

ANC promises a Basic Income Grant by 2026 will be funded through ‘progressive mechanisms.’ Therefore, party is exploring several tax measures, “Including social security tax and effectively using existing resources.” Plus, it says it’s open to considering more diverse funding sources.

“The SRD grant should serve as the foundation for the transition to a permanent basic income support grant. To not exclude a large number of people, we will improve the value of the grant and extend its reach. We support a grant that benefits all work-seekers,” concluded the party.

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