The Department of Social Development is hard at work to ensure that there is basic income support for people between the ages of 18-59.
This was revealed at the sitting of the Portfolio Committee on Social Development on Wednesday. This as the department presented its progress in the development of the Basic Income Support Policy.
Work on the policy has been ongoing, with the first draft of the policy having been presented to the Social Protection, Community and Human Development Cluster Cabinet Committee (SPCHD) on 26 November 2024.
The committee directed that further consultations on the policy be held with internal stakeholders, focusing on affordability of the policy and linkages of its proposed beneficiaries with economic opportunities.
The department said an interdepartmental workshop was held to give effect to this directive. The workshop affirmed the need to link the policy’s beneficiaries to other employment and sustainable livelihood opportunities.
A follow up workshop will be held in June 2025, followed by bilateral engagements with the Presidency, the Department of Employment and Labour and National Treasury.
“Once the consultations are concluded, the department will approach the SPCHD Cabinet Committee again in the second quarter of the 2025/26 financial year, to request Cabinet to consider the revised policy, and if approved, publish it for public comments.
“In order to ensure stability during these consultations period, the department will consult National Treasury for the SRD [Social Relief of Distress] provision to be extended until the legislative process is complete, to ensure that its beneficiaries are protected from extreme poverty and vulnerability.
“The department, has for the interim, been granted an extension by the National Treasury to continue with this provision for the 2025/26 financial year,” the department explained.
Additionally, members of the portfolio committee were pleased that the Minister Sisisi Tolashe has delivered on her budget vote commitments to stabilise the department by filling executive posts.
Historical progress and ongoing consultations:
• The Basic Income Grant (BIG) was first proposed in 1998, with a technical proposal drafted in 2002, which did not gain Cabinet approval.
• In 2007, an Inter-Ministerial Committee (IMC) and Inter-Departmental Task Team (IDTT) were established to explore comprehensive social security reforms.
• In 2021 and 2022, an expert panel assessed the feasibility of Basic Income Support (BIS), considering its social and economic impact.
• The department proposed that the Social Relief of Distress (SRD) grant be made permanent, with a phased approach to increase benefits progressively.
• The proposed entry-level BIS grant should be set at the Lower Bound Poverty Line (LBPL), with long-term plans to eliminate poverty at the Upper Bound Poverty Line (UBPL).
• Extensive stakeholder consultations across all provinces informed the development of the BIS draft policy proposal.
• The Department had requested an extension of the SRD grant for an additional two years while finalising the BIS policy.A sub-team was established to assess the affordability of BIS, concluding that it was financially feasible based on economic modelling, though consensus with National Treasury was still pending.
• The department had planned to submit the draft BIS policy to Cabinet for approval by October 2024 but required further consultation with internal stakeholders such as National Treasury.
• The department, has for the interim, been granted an extension by the National Treasury to continue with this provision for the 2025/26 financial year.
• The department is engaging with the Portfolio Committee in the 2025/26 financial year to finalise the policy framework.
– SAnews.gov.za
