South Africa: Treasury to Decide On Basic Income Policy By July, MPs Told

Social Relief of Distress grant might be extended while a new policy is finalised

The Department of Social Development (DSD) expects to hear by July whether the National Treasury is satisfied with revisions made to its proposed Basic Income Support (BIS) policy. This is a key step before the policy can advance through government approval processes.

The department briefed Parliament's Select Committee on Social Services on Wednesday on progress in developing the policy, intended to provide income support for working-age adults.

The DSD first presented a draft policy to Cabinet in November 2024, but Cabinet sent it back for further work, asking for stronger links between income support and employment opportunities.

Deputy director-general for comprehensive social security Brenda Sibeko told MPs that the department had spent the past year consulting government departments on how the proposed grant could be linked to economic opportunities and employment initiatives.

On 22 May, the DSD and the Presidency held a workshop with the departments of Home Affairs, Employment and Labour, Small Business Development and Basic Education, SASSA and StatsSA.

"After this, we shared the revisions and updates done with the National Treasury and asked them for a meeting. Hopefully, this will either happen later this month or in early July for us to hear whether we have answered all the questions they raised," Sibeko said.

The Treasury had given the department a three-page document setting out questions to be answered before it could support the policy, Sibeko said. She said the Treasury's feedback would determine the department's next steps finalising the policy.

Sibeko said that after the meeting with the Treasury in July, the department would update the draft policy and submit it for a Socio-Economic Impact Assessment System review by the Presidency.

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If supported, the draft policy will return to Cabinet for approval to be published for public consultation.

Following public consultations and further revisions, the policy will again be submitted through government approval processes before returning to Cabinet for final approval.

Sibeko said the department was still aiming to submit the policy to Cabinet for final approval by the end of March 2027.

She added that the department might need to seek another extension of the Social Relief of Dis