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SASSA Grants in 2025 Face Major Crossroads as Court Appeal Looms
The South African Social Security Agency (SASSA) and National Treasury have been granted leave to appeal a landmark January 2025 ruling on Social Relief of Distress (SRD) grants, according to GroundUp.
Constitutional Challenge to Grant Limitations
Judge Leonard Twala’s original ruling declared regulations limiting access to R370 monthly SRD grants unconstitutional, ordering SASSA to “expand and increase” the grant amount. The court found that denying assistance due to budget constraints was unlawful.
However, in granting the appeal, Judge Twala acknowledged the case’s complexity: “This impacts almost 30% of the population… it deserves the attention of the Supreme Court of Appeal.”
Economic Pressures on Grant Beneficiaries
The appeal comes amid growing economic pressures on South Africa’s 28 million grant recipients:
- A 5.9% above-inflation grant increase in April 2025
- Proposed 1% VAT increase over two years
- 12.7% Eskom electricity hike effective April
Impact on Older Person Grants
The 4 million recipients of Older Person grants (ages 60-74) will see their monthly payments increase to R2,310. However, analysis shows:
| Expense | Current Cost | Projected Increase |
|---|---|---|
| Basic food basket | R1,500 | R7.50 (0.5% VAT) |
| Monthly electricity | R500 | R63.50 (12.7%) |
| Transport/medication | R300 | R15 (5% inflation) |
Broader Economic Implications
Finance Minister Enoch Godongwana linked potential VAT increases directly to SRD grant funding, stating the tax adjustment might be unnecessary if the appeal succeeds. Economists warn:
“Food inflation typically exceeds general inflation by 2-3 percentage points. These grant increases will likely be erased by rising costs within months.”
Cabinet is expected to make final decisions on VAT adjustments by May 2025, creating a pivotal moment for both social welfare policy and national fiscal strategy.
Public Engagement
Should the Supreme Court uphold SASSA’s appeal? Share your views in the comments or WhatsApp 060 011 0211.
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