The government’s appeal against a High Court ruling that eased access to the R370 social relief of distress (SRD) grant reaches the Supreme Court of Appeal this week. At issue are the online-only application system and income verification rules that civil society groups say exclude many eligible people.
National Treasury has warned that upholding the ruling would force the state to find between R93.5 billion and R139 billion to cover higher grant costs.
High court struck down restrictive regulations
In its January 2025 judgment, the Gauteng High Court declared several regulations unconstitutional and invalid. These included the requirement for online-only applications and rules that treated almost every bank deposit as disqualifying income.
The court found the online-only process created an insurmountable barrier for people without smartphones, digital literacy or reliable internet. It ordered that applications also be accepted at South African Social Security Agency (Sassa) offices. The judgment further defined “income” as regular money from formal or informal work and “financial support” as regular assistance that benefits the recipient.
Sassa’s failure to pay about 10–15% of approved applicants was also ruled unlawful. The court ordered the social development minister, in consultation with the finance minister, to produce a plan within four months to reverse the real decline in the grant’s value and to raise both the R370 grant amount and the R624 income threshold progressively, taking inflation and food poverty lines into account.
Background to the legal challenge
The SRD grant was introduced in 2020 at the height of the Covid-19 pandemic to support unemployed working-age adults. It began at R350 a month; about 14 million people applied. The amount rose by R20 to R370 in April 2024.
Civil society organisations, including the Institute for Economic Justice (IEJ) and #PayTheGrants, represented by the Socio-Economic Rights Institute (SERI), launched the case in July 2023. They argued that the online-only system and bank-verification processes shut out poor, rural and digitally disconnected people. Black Sash national advocacy manager Hoodah Abrahams-Fayker described the court action as a last resort after years of unanswered concerns.
Government and civil society positions
National Treasury and the Department of Social Development are appealing. Treasury papers stress the “profound budgetary implications,” noting that budgets to 2026/27 already require roughly R200 billion in expenditure cuts. Even the most conservative estimate adds R93.5 billion—a 36.9% increase—to the existing R253.8 billion grants allocation. The department maintains the grant remains a temporary emergency measure outside the Social Assistance Act and that the online platform was the only practical channel during the pandemic.
IEJ and #PayTheGrants have asked the Supreme Court of Appeal to dismiss the appeal with costs. Critics argue the state is presenting a political choice as an unavoidable funding constraint.
Abrahams-Fayker has called for a hybrid application system, noting the urban-rural digital divide six years after the grant’s introduction.
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