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The Congress of South African Trade Unions (COSATU) has welcomed the government’s decision to extend the Special Relief of Distress (SRD) Grant until March 2025, providing crucial support to 8 million unemployed individuals. However, while applauding the extension, COSATU has voiced disappointment over the lack of adjustment for inflation in the grant’s monetary amount since its inception in 2020.

In a statement issued by Matthew Parks, Acting National Spokesperson for COSATU, the organization acknowledged the significant role the SRD Grant has played in alleviating poverty for millions of South Africans without a source of income. The grant, although facing challenges and limitations, has served as a lifeline for many and has laid the groundwork for the long-awaited Basic Income Grant.

COSATU’s disappointment stems from the failure to address inflationary pressures on the SRD Grant, which has remained stagnant since its introduction. This stagnation is deemed unjustifiable, especially considering increases to the salaries of Members of Cabinet and Parliament, who play a role in passing the budget.

The organization expressed hope that President Cyril Ramaphosa’s commitment to extending and increasing the SRD Grant, as mentioned in his recent State of the Nation Address, will be honored by the government. COSATU calls for an increase in the grant in the upcoming April 2024/25 Budget to recover lost value to inflation since 2020 and to pave the way for it to reach the Food Poverty Line by the November 2024 Medium-Term Budget Policy Statement.

Despite acknowledging fiscal constraints, COSATU emphasizes the need to prioritize support for the poor, particularly amid rising living costs and a high unemployment rate. The organization argues that increasing the SRD Grant is feasible within the budget, as it currently represents a small fraction of total expenditure but reaches a significant portion of society. Moreover, COSATU highlights the positive economic impact of the grant, as funds are injected into the local economy, stimulating growth and contributing to tax revenue.

As discussions around the SRD Grant continue, COSATU remains steadfast in advocating for the needs of the most vulnerable in society and calls for decisive action to address the ongoing challenges of poverty and unemployment.

⁃ The VIP Team

⁃ COSATU