Minister Tolashe to submit Basic Income Grant proposal before financial year end

THE Social Development department is preparing to present policy proposals for a Basic Income Grant (BIG) to Cabinet before the conclusion of the current financial year.

The announcement by Minister Sisisi Tolashe follows the recent approval from a Cabinet sub-committee to proceed with consultations on the proposed policy, signalling a promising step towards addressing income inequality and poverty in South Africa.

Tolashe was responding to questions in Parliament, revealing that her department has conducted extensive research into the feasibility of implementing a Universal Basic Income Grant.

However, a key finding of this investigation determined that a fully universal grant would be financially unmanageable.

Instead, Tolashe proposed a more practical approach, suggesting the continuation of existing social grants geared towards vulnerable groups, including children, the elderly, and persons with disabilities.

“The department has therefore conducted extensive research to assess the feasibility of providing a Basic Income Support to the working age population aged 18-59, who are the only remaining category of citizens excluded from the current social grants framework,” Tolashe said.

She was responding to written parliamentary questions from MPs.

ANC MP Tshilidzi Bethuel Munyai asked about the progress her department has made in advancing the Universal Basic Income Grant policy for Cabinet approval while ActionSA MP Dereleen James enquired about key findings of the feasibility study and the potential legislative amendments required to give effect to the proposed grant.

Tolashe explained that the draft policy was building on the existing Covid-19 Social Relief of Distress (SRD) grant.

Tolashe said the department has since requested the Cabinet committee on social protection, community and human development to publish the draft policy for public comments in November 2024.

It was directed to strengthen the section regarding linkages with economic opportunities and costing as well as further consult other departments with the National Treasury asking that there should be costing and financial implications of the proposed policy.

Following extensive consultations with stakeholders from government, academia, and think tanks during a policy colloquium held in October 2025, the department has been polishing the proposal with the intent of clarifying mechanisms and funding options.

According to Tolashe, her department is currently working with the presidency to refine the draft Basic Income Grant policy and update its costing before the end of the financial year.

“The department anticipates re-tabling the reviewed draft BIS policy before social protection, community and human development Cabinet Committee to request approval to publish it for public comment in the last quarter of this financial year,” she said.

The potential legislative amendments required to give effect to a basic income support policy were the amendment of the Social Assistance Act, which currently only makes provision for social grants for children, older persons and persons with disabilities.

Tolashe said the department intended to table the policy for Cabinet approval towards the end of the current financial year.

“Should Cabinet grant approval, there will be a need to draft the amendment legislation and table this to Cabinet, then Parliament for approval and processing. The timeline for this depends very much on Cabinet and Parliamentary processes, which the department is not able to determine.”

Cape Times