All permanent social grants in South Africa, with the sole exception of the COVID-19 Social Relief of Distress grant, are scheduled to increase in the upcoming financial year. The confirmation follows the release of the 2026 Budget Review by the National Treasury on Wednesday, which outlined adjustments to social development expenditure over the medium term.
Key Takeaways
- Most Social Grants Increase In 2026: Permanent grants will rise by between R20 and R85 per month, with the largest adjustments applying to the Old Age, Disability, War Veterans and Care Dependency grants.
- SRD Grant Remains At R370 With Limited Medium-Term Funding: The Social Relief of Distress grant is extended until 31 March 2027 at R370 per month, but allocations taper sharply in the outer years of the medium-term framework.
- Social Grants Dominate Social Development Spending: Excluding the SRD grant, expenditure on social grants is projected to increase from R246.6 billion in 2025/26 to R276.5 billion in 2028/29, reinforcing their central role in poverty alleviation.
About Arcadia Finance
Apply for your loan with ease through Arcadia Finance. There are no application fees, and you can compare offers from 19 trusted lenders, all registered with South Africa’s National Credit Regulator. Enjoy a simple, secure process designed around your financial needs.
SRD Grant Extended at R370 While Other Social Grants Increase in 2026
Although the various grants will rise by between R20 and R85 per month, the Social Relief of Distress grant will remain fixed at R370 per beneficiary, with payments continuing until next year under its current framework.
National Treasury indicated that social grants represent the largest proportion of expenditure within the social development portfolio. Excluding the Social Relief of Distress grant, total spending is projected to grow from R246.6 billion in 2025/26 to R276.5 billion in 2028/29.
An additional R36.4 billion has been allocated to extend the Social Relief of Distress grant until 31 March 2027, maintaining the monthly value at R370 per recipient.
Over the outer years of the medium term expenditure framework, provision for the Social Relief of Distress grant declines significantly, with only R1.7 billion and R1.2 billion pencilled in for 2027/28 and 2028/29 respectively, signalling a tapering allocation beyond the extension period.
In his 2026 State of the Nation Address, President Cyril Ramaphosa confirmed that the Social Relief of Distress grant is undergoing a redesign process to align more closely with a formal work-seeker’s support mechanism.
At present, approximately 8.2 million individuals receive the Social Relief of Distress grant, while the total number of social grant beneficiaries across all categories stands at roughly 26.5 million people nationwide.
Beneficiaries should ensure that their contact details and banking information registered with SASSA are up to date to avoid payment delays when new financial year adjustments take effect.

Breakdown of Social Grant Increases
The adjustments to monthly grant values for 2026 are reflected below:
| Grant | 2025 Value | 2026 Value | Change |
|---|---|---|---|
| Old Age Grant | R2 315 | R2 400 | +R85 |
| War Veterans Grant | R2 335 | R2 420 | +R85 |
| Disability Grant | R2 315 | R2 400 | +R85 |
| Foster Care Grant | R1 250 | R1 295 | +R45 |
| Care Dependency Grant | R2 315 | R2 400 | +R85 |
| Child Support Grant | R560 | R580 | +R20 |
| Grant-in-Aid | R560 | R580 | +R20 |
| Social Relief Of Distress Grant | R370 | R370 | No Change |
The largest monthly increases of R85 apply to the Old Age, War Veterans, Disability and Care Dependency grants. The Foster Care Grant rises by R45, while the Child Support Grant and Grant-in-Aid increase by R20 each. The Social Relief of Distress grant remains unchanged.
The Old Age Grant is one of the most significant poverty alleviation tools in South Africa and supports millions of multigenerational households, often serving as the primary income source for entire families.
Medium Term Adjustments and Budget Outlook
The overall social grant allocation has been revised downward over the medium term, reflecting a lower inflation forecast and improved grant targeting and verification processes. These refinements are expected to generate savings of R2 billion in 2026/27 and R1 billion in 2027/28.
The broader Social Development function budget is projected to increase by approximately 4.2 percent, rising from R412.2 billion in 2025/26 to R466.4 billion in 2028/29.
This allocation underpins poverty reduction initiatives by financing social grants, social insurance risk benefits and welfare services. It also provides funding for development initiatives, empowerment programmes, gender equality strategies and advocacy work supporting children, women, youth, older persons and individuals living with disabilities.
Households relying on grants should factor in annual inflation when budgeting, as even though nominal increases are announced, the real purchasing power of grants depends on food, transport and electricity price movements.

Strengthened Compliance and Verification Measures
National Treasury reported that the 2025/26 allocation for the South African Social Security Agency was made conditional upon measurable improvements in biometric verification, income validation and more frequent eligibility reviews for beneficiaries.
By December 2025, SASSA had conducted bank account checks on approximately six million grant recipients and examined eight million credit bureau profiles as part of strengthened oversight procedures. These verification exercises identified 291,581 beneficiaries for further review.
Following the review process and strict application of the sliding scale system, which determines grant values based on recipients’ declared income levels, grant amounts were adjusted for 8,599 disability and old age beneficiaries in line with eligibility requirements.
These corrective adjustments are projected to yield savings of R36.4 million in 2025/26. In addition, 34,661 grants were cancelled entirely after non-compliance or ineligibility was confirmed, generating anticipated savings of R170.7 million by the end of the financial year.
SASSA has further introduced biometric verification for all new applicants to strengthen identity authentication and reduce fraudulent claims within the system.
Treasury indicated that efforts to combat fraud and corruption will be intensified, while safeguards remain in place to protect legitimate beneficiaries from wrongful exclusion.
Beneficiaries who are flagged for review should respond promptly to SASSA communication and provide required documentation to prevent suspension or cancellation of payments.

Conclusion
South Africa’s 2026 social grant framework reflects a balancing act between expanding support for vulnerable households and tightening fiscal discipline. While most permanent grants will see modest increases to help cushion rising living costs, the Social Relief of Distress grant remains unchanged at R370 and faces a narrowing allocation beyond its current extension. With more than 26 million beneficiaries relying on the system, the adjustments underscore both the scale of the country’s social safety net and the growing emphasis on improved targeting, compliance and long term sustainability within constrained public finances.
Fast, uncomplicated, and trustworthy loan comparisons
At Arcadia Finance, you can compare loan offers from multiple lenders with no obligation and free of charge. Get a clear overview of your options and choose the best deal for you.
Fill out our form today to easily compare interest rates from 19 banks and find the right loan for you.