R4.8-billion Meant For Social Grants Goes Unspent

The Department of Social Development underspent on social grants in the 2025/26 financial year. Illustration: Lisa Nelson

Of the department’s R285.9-billion budget for social grants, R281.1-billion was spent.

Officials told Parliament’s Portfolio Committee on Social Development on Wednesday that the shortfall was mainly due to stricter grant verification measures, lower-than-expected uptake of some grants, and beneficiaries of the R370-a-month Social Relief of Distress (SRD) grant going unpaid.

R3.1-billion of the underspending was related to the SRD grant. This amount still needs to be paid to beneficiaries in the 2026/27 financial year.

The department also underspent on the old age grant by R793-million, the child support grant by R533-million and the disability grant by R318-million.

DSD Chief Financial Officer Thandeka Ngcobo said improved administration and grant approval processes had contributed to lower spending.

Temporary disability grants lapse when beneficiaries reach the end of their six- or 12-month eligibility periods.

MPs questioned whether the stricter verification measures may have prevented eligible beneficiaries from accessing grants.

“Government frequently argues that poverty and vulnerability are increasing and that more people need assistance. Yet almost R5-billion was not spent,” said DA MP Nazley Sharif.

She said members of the committee regularly receive complaints from beneficiaries struggling with biometric verification and grant reviews.

Patriotic Alliance MP Sheila Peters asked how the department could assure Parliament that legitimate beneficiaries were not being excluded “under the guise of administrative efficiencies”.

Sassa CEO Themba Matlou said payment delays for approved beneficiaries were often linked to bank verification issues and beneficiaries needing to update their banking details.

He acknowledged that verification measures could sometimes create hardship for beneficiaries, but said Sassa had strengthened the electronic life certification and other verification processes to protect the integrity of the grant system.

This article was originally published on GroundUp.

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