2026 budget: Social grants set to increase, Godongwana confirms

People protest for the R350 grants outside Sassa office in Bellville, Cape Town, in April. Picture: Gallo Images South Africans reliant on social grants will see increases next year, Finance Minister Enoch Godongwana announced in his 2026 Budget Speech at the Nieuwmeester Dome in Cape Town. The speech follows the Medium-Term Budget Policy Statement (MTBPS) delivered in late 2025 and sets out government spending plans for the 2026/2027 financial year, starting 1 April 2026.

Reflecting on previous budget commitments, Godongwana said on Wednesday: “In the last budget, government promised that spending priorities would not be funded through tax increases if this could be avoided.” To achieve this, the National Treasury has identified R12 billion in savings over the medium term. The minister highlighted that improved targeting of social grants and beneficiary verification will save R3 billion by reducing fraud. He praised the South African Social Security Agency (Sassa) for upgrading its biometric and income verification systems, which led to the termination of nearly 35 000 grants found to be incorrect or fraudulent.

According to Godongwana, social grants remain a top government priority. R2.67 trillion will be spent in the 2026/2027 fiscal year, with R292.8 billion of the total amount going towards social grants. Godongwana confirmed that the social relief of distress (SRD) grant will remain unchanged throughout the coming year. He had previously announced during the MTBPS that the grant is set to continue until March 2027.