The severe impact of the pandemic on the economy and its ability to create jobs has raised new questions about the reliance on economic growth to address unemployment and poverty, and renewed interest in the prospect of a basic income grant as another lever to tackle poverty and inequality and engender a more inclusive growth path, the department stated. In addition, the extension of the R350 Social Relief of Distress (SRD) grant for another year is expected to provide basic support for approximately 10 million unemployed South Africans as they look for work.

During this fiscal year, the Department of Social Development intends to begin a basic income grant feasibility study.