Universal Basic Income – In a groundbreaking move set to impact millions of South Africans, the government has confirmed that the existing R350 Social Relief of Distress (SRD) grant will officially come to an end starting this July. In its place, a more permanent and inclusive support mechanism—Universal Basic Income (UBI)—is expected to be introduced, marking a historic shift in the country’s social welfare framework. The SRD grant, introduced during the peak of the COVID-19 pandemic in 2020, served as a vital financial cushion for unemployed citizens and vulnerable individuals. Over the years, the R350 payment evolved from a temporary intervention to a long-term support structure, despite multiple extensions. However, with growing pressure for sustainable economic solutions and calls for broader welfare reform, the government is taking a bolder step by initiating the phased rollout of Universal Basic Income. The Universal Basic Income plan is designed to be more inclusive, long-term, and responsive to the realities of South Africa’s poverty levels. Instead of targeted payments only to the unemployed, the UBI aims to provide consistent financial support to all qualifying adults regardless of employment status, removing complex application processes and ensuring a basic standard of living for everyone. As July 2025 begins, existing SRD beneficiaries are urged to prepare for this transition. Details are being finalized, but several key updates—including payment amounts, eligibility rules, and application adjustments—have already been shared by the Department of Social Development. Below, we explore all the essential information you need to know about the upcoming Universal Basic Income program and how it will replace the R350 SRD grant.
Universal Basic Income – Why the SRD Grant is Being Discontinued
The government has taken this decision after extensive policy consultations and review of economic data.
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- The SRD grant was always meant to be temporary and emergency-based.
- Rising unemployment and inflation demand more robust support.
- Long-term poverty reduction strategies have become urgent.
- SRD administration has high operational costs and limited coverage.
- Universal Basic Income is viewed as a fairer and more sustainable alternative.
Key Differences Between SRD Grant and Universal Basic Income
The shift from SRD to UBI marks a fundamental change in how social assistance will be delivered.
| Feature | SRD Grant (R350) | Universal Basic Income (UBI) |
|---|---|---|
| Monthly Amount | R350 | Estimated R1,200 – R2,000 |
| Eligibility | Only unemployed and non-receivers of other grants | All adults aged 18+ |
| Duration | Temporary (month-to-month extensions) | Permanent, subject to funding policy |
| Application Process | Online application, strict criteria | Automatic or simplified registration |
| Payment Platform | SASSA Postbank, CashSend, Bank transfer | To be finalized (likely same systems) |
| Age Requirement | 18–60 years | 18+ (no upper age limit) |
| Identity Verification | Required monthly | Initial once-off verification |
| Expected Rollout Date | Already in place | Starting July 2025 (phased) |
How Universal Basic Income Will Work
The UBI will simplify access and expand the support base.
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- No need to prove unemployment or income in every cycle.
- Everyone aged 18 and older with a valid South African ID will qualify.
- Monthly payments expected to range between R1,200 and R2,000.
- Phased rollout in different provinces to test infrastructure.
- Verification through Home Affairs database.
Provinces in Phase 1 Rollout
The initial implementation will start with pilot provinces before going national.
| Province | Rollout Start Date | Estimated Beneficiaries | Pilot Duration |
|---|---|---|---|
| Gauteng | 15 July 2025 | 1.4 million | 3 months |
| Western Cape | 20 July 2025 | 900,000 | 3 months |
| KwaZulu-Natal | 25 July 2025 | 1.2 million | 3 months |
| Eastern Cape | 1 August 2025 | 750,000 | 3 months |
What Beneficiaries Need to Do Now
To avoid disruptions in payments, former SRD recipients must prepare ahead of time.
- Update personal details on the SASSA portal before 15 July.
- Ensure your bank account is active and in your name.
- Verify your ID and phone number with Home Affairs.
- Keep an eye on announcements from the Department of Social Development.
Documents Needed for UBI Registration
Applicants will need fewer documents than SRD, but verification remains critical.
- South African ID book/card or Smart ID
- Proof of banking details (any statement in your name)
- Recent proof of residence (not older than 3 months)
- Mobile number linked to your ID (for OTP verification)
Impact on Current SRD Beneficiaries
With UBI replacing SRD, there are expected benefits and concerns among citizens.
- Existing R350 payments will stop after 30 June 2025.
- Eligible beneficiaries will be moved to UBI automatically in most cases.
- There may be delays for some users during verification or rollout.
- Those who were excluded from SRD may now qualify under UBI rules.
Advantages of Universal Basic Income Over SRD
The transition to UBI is expected to bring wider benefits.
- Higher monthly payment (up to R2,000)
- Fewer eligibility restrictions
- Covers more adults, including part-time workers or informal workers
- Encourages financial stability and dignity
Government’s Statement on the New System
According to the Department of Social Development, this is a transformative moment.
“We are moving from a relief-based model to a rights-based one. Universal Basic Income is not just about poverty relief—it is about restoring dignity and ensuring everyone has a baseline level of financial security.”
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The President’s office has confirmed that Cabinet has approved the budget for Phase 1 rollout, with plans to review feedback and expand nationwide by early 2026.
Concerns Being Raised
Despite the optimism, not everyone is convinced.
- Economists warn about long-term budget pressures.
- Some fear corruption in beneficiary registration.
- Lack of digital access in rural areas could delay uptake.
- Payment systems may face overload in early months.
Funding Sources for Universal Basic Income
To implement such a large-scale program, new funding models are being proposed.
| Funding Source | Status | Contribution Estimate |
|---|---|---|
| Wealth Tax on High Earners | Under discussion | R15 billion/year |
| Reallocation from SRD Budget | Approved | R44 billion/year |
| Corporate Windfall Tax | Proposed | R10–R12 billion/year |
| International Donor Support | Ongoing talks | Unknown |
| Social Security Contributions | Awaiting legislative review | TBD |
Timeline for Full Implementation
- June 2025: Final SRD grant payments issued.
- 15–25 July 2025: Pilot rollout begins in 4 provinces.
- Oct 2025: Midterm report from Treasury and Social Development.
- Jan 2026: National expansion planned based on pilot results.
This is one of the boldest policy shifts in South Africa’s modern history. While the SRD grant played a crucial role during the COVID era, its discontinuation signals the end of emergency-based relief and the beginning of long-term financial empowerment through Universal Basic Income. Citizens are advised to stay informed and take necessary steps early to avoid delays or exclusion. The success of UBI will depend heavily on government transparency, system efficiency, and continued funding. If implemented correctly, this could redefine the role of the welfare state and significantly improve millions of lives in South Africa.
FAQs of Universal Basic Income
1. Will the R350 SRD grant be paid in July 2025?
No, the final SRD grant payment is scheduled for June 2025. From July onward, eligible citizens will be moved to Universal Basic Income.
2. How much will the new Universal Basic Income payment be?
The government is planning monthly payments between R1,200 and R2,000, depending on available funding and pilot feedback.
3. Do I need to reapply if I was already receiving the SRD grant?
Most existing beneficiaries will be automatically moved to the UBI system, but you must verify your details with SASSA and Home Affairs.
4. When will UBI be rolled out nationwide?
The pilot will begin in July 2025 in selected provinces. Full national rollout is expected by January 2026 if the pilot succeeds.
5. Can employed people also receive UBI?
Yes, unlike SRD, the Universal Basic Income will not require proof of unemployment. All adults aged 18+ are eligible if they meet the basic ID and residency criteria.
