SASSA grants: Why bigger payouts may remain out of reach 

South African Social Security Agency (SASSA) grants have become a vital lifeline for millions of South Africans facing poverty and unemployment. Calls for more generous payments continue, especially as household costs remain high. 

Political leaders have also put forward proposals for expanding income support. 

Yet the size of the country’s existing social safety net makes major increases difficult to fund.

SASSA GRANTS: WHY ARE BIGGER PAYMENTS BEING REQUESTED?

The latest calls come from different political directions. ANC secretary-general Fikile Mbalula recently renewed support for a Basic Income Grant (BIG) during an address in Galeshewe. He said it could help unemployed young people access training and eventually find work. 

The ANC has previously proposed turning the Social Relief of Distress (SRD) grant into permanent income support. Its 2024 policy statement backed extending the grant and increasing its value over time. It also proposed progressive taxation and other funding measures. 

Meanwhile, EFF leader Julius Malema has called for SASSA grants to rise substantially. He said grants should start at R4,500 under an EFF government.

SASSA GRANTS ALREADY CONSUME A HUGE SUM

The numbers explain why bigger payments face a difficult road. National Treasury allocated R292.8 billion for SASSA grants during the 2026-2027 financial year. The system supports 26.5 million beneficiaries. 

Current payments already include R2,400 for older persons and disability beneficiaries. The child support grant stands at R580. The SRD grant remains separate, with funding provided for its continuation. 

Treasury also expects social development spending to grow over the medium term. That spending must compete with demands for healthcare, education, infrastructure and other government services.

The tax base creates another constraint. The 2026 Budget Review records about 8.3 million personal income taxpayers with taxable income. Around one million taxpayers account for 62% of personal income tax. 

COULD SOUTH AFRICA SIMPLY FIND MORE MONEY?

That is where the debate becomes complicated. Economist Dawie Roodt recently argued that sharply higher SASSA grants cannot be funded from the existing fiscal position. He also questioned whether the tax base could carry the additional burden. 

A much larger grant would therefore require additional revenue, spending cuts or stronger economic growth. Each option carries consequences.

The ANC says a permanent BIG could be funded through progressive tax measures and better use of existing resources. However, such a system would still need a sustainable funding model before a large expansion could become reality. 

For people relying on SASSA grants, the issue is therefore bigger than a promised increase. South Africa must balance immediate household needs against what the public purse can sustain.

The 2026 Budget already increased several grants.

A dramatic increase across the system would require far more than a political promise; it would require money that government must raise and continue providing year after year.