R370 SRD grant battle heads to Supreme Court of Appeal
· The South African
The future of South Africa’s R370 Social Relief of Distress (SRD) grant will come under the spotlight on Tuesday as the Supreme Court of Appeal (SCA) in Bloemfontein hears the government’s challenge against a High Court ruling that found several aspects of the grant system unlawful.
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The case could have major implications for millions of unemployed and financially vulnerable South Africans who rely on the monthly grant.
The government is appealing a January 2025 judgment by the High Court in Pretoria, which found that several regulations governing the SRD grant were unconstitutional and had created barriers that excluded eligible applicants.
The case was brought by the Institute for Economic Justice (IEJ) and #PayTheGrants, with the Socio-Economic Rights Institute of South Africa (SERI) representing the applicants.
What did the High Court find?
Judge Leonard Twala found that the government had used administrative and procedural requirements that unfairly restricted access to the grant.
One of the key issues was the requirement that applications be made online. The court found that this could exclude vulnerable people, particularly those without reliable access to smartphones, data or the internet.
The judgment also challenged the government’s definition of income and financial support when determining eligibility.
The High Court further found that the R624 monthly means-test threshold and the R370 grant amount were inadequate and ordered the government to develop a plan to progressively increase both.
The court also found that the SRD grant had effectively become a permanent form of social assistance rather than simply a temporary Covid-19 intervention.
Government challenges permanent status
The government has appealed against the judgment in its entirety, arguing that the High Court overstepped its powers by effectively turning a temporary Covid-era intervention into a permanent income grant for unemployed people.
The state maintains that the SRD grant was introduced as a temporary emergency measure and that decisions about its continuation and funding remain matters for the executive and Parliament.
The government also disputes the finding that online-only applications are inherently exclusionary.
In its appeal papers, the state points to more than 15 million applications through the digital platform and says more than 8.7 million people who met the qualifying criteria had been paid.
R370 grant and R624 threshold under scrutiny
The adequacy of the grant itself is another major issue before the SCA.
The SRD grant was increased from R350 to R370 in April 2024, but has remained at that level since then. The eligibility threshold is currently R624 per month.
The IEJ and #PayTheGrants argue that both amounts have failed to keep pace with the rising cost of living.
The IEJ says the food poverty line has risen to R855 per month, meaning the R370 grant falls well short of what is needed to meet even basic food requirements.
Treasury warns of the cost
National Treasury has raised concerns about the potential financial implications if the High Court ruling is upheld.
The government argues that expanding the grant to cover substantially more eligible people, while also increasing its value, could place significant pressure on the fiscus.
Treasury estimates that extending the grant to 18 million people and increasing its value in line with inflation could cost about R93.5 billion a year.
The state has therefore asked the SCA to overturn the High Court findings. Alternatively, if the appeal fails, Finance Minister Enoch Godongwana has asked for the implementation of certain aspects of the ruling to be suspended for at least 12 months, and preferably 24 months.
Millions could be affected
The outcome of Tuesday’s appeal could determine how the SRD grant is administered and who is able to access it.
The IEJ and #PayTheGrants argue that millions of people who are currently excluded could potentially qualify if the barriers identified by the High Court are removed.
The government, meanwhile, maintains that the grant must remain within the limits of available public funding and its original legislative purpose.
The SCA hearing on 25 August 2026 will therefore be closely watched, with the court’s eventual judgment potentially shaping the future of one of South Africa’s most significant forms of assistance for unemployed adults.