Minister of Finance Enoch Godongwana delivered the 2025 Budget Speech to the National Assembly in Cape Town on March 12, 2025. In his address, he announced that R284.7 billion would be allocated to social grants for the 2025/26 financial year, ensuring an increase in grant payments across different categories.
Increase in Social Grants for 2025/26
The Finance Minister confirmed that pensioners and other social grant recipients would see an increase in their monthly payments this year. The Old Age Grant and Disability Grant will both rise by R130, bringing the total monthly payment to R2,315. The Child Support Grant will increase by R30 to R560 per month, while the Foster Care Grant will go up by R70.
This allocation reflects the government’s commitment to supporting vulnerable groups amid ongoing economic challenges. The increase in grants is intended to provide some relief to low-income households, particularly in a time when the cost of living continues to rise.
Bigger Increase Compared to Last Year
The 2025 grant increases are higher than those implemented in 2024. Last year, the Old Age and Disability Grants were raised by only R100, while the Foster Care Grant increased by R50, and the Child Support Grant saw a modest R20 increase. The additional funding for social grants in 2025 signals an effort by the government to address the financial struggles faced by many South Africans.
Social Grants as a Key Part of the Budget
The R284.7 billion allocation for social grants forms a significant part of the national budget. South Africa’s social welfare system supports millions of people who rely on these payments for basic needs. The government has faced criticism in the past for not doing enough to assist the poor, and these increases may be seen as a response to those concerns.
Public Reaction and Economic Context
While the increase has been welcomed by many, some civil society groups argue that it is still not enough to meet the needs of struggling families. Rising inflation and unemployment continue to put pressure on households, and some activists believe more financial assistance is required.
At the same time, concerns remain about the sustainability of social grant funding. The government must balance providing support to vulnerable citizens while ensuring economic stability and growth. Critics warn that continued reliance on grants without economic growth could strain public finances in the long term.
Conclusion
The 2025 Budget Speech reaffirmed the government’s commitment to social welfare by increasing grant allocations. Pensioners, people with disabilities, and caregivers will all benefit from higher payments this year. While the increases are larger than last year’s, the debate continues over whether they are sufficient to keep up with the rising cost of living. As the government implements the new budget, all eyes will be on how effectively these funds are distributed and whether they truly alleviate financial hardship for South Africa’s most vulnerable citizens.