SA Expands Pilot Scheme – In a bold move to tackle poverty, energy access, and basic living conditions, the South African government has expanded its widely talked-about pilot program. As of September 1, 2025, eligible citizens in five selected provinces will now receive a groundbreaking support package that includes FREE electricity, FREE water, and a monthly Basic Income Grant (BIG) of R2,500. This announcement has sparked nationwide interest, particularly as cost-of-living pressures continue to mount. The program was first trialed quietly in 2024 but is now being publicly expanded under the Department of Social Development and Department of Mineral Resources and Energy with co-funding from the National Treasury and IIPSA. The pilot aims to test the feasibility of a Universal Basic Services (UBS) model alongside a Basic Income Grant (BIG) model in areas hardest hit by unemployment, service delivery failure, and municipal collapse. While this is not yet a national rollout, the implications are massive — both for the 1.2 million people directly benefitting, and the 10 million more watching closely. Here’s everything you need to know about how the program works, who qualifies, where it’s being rolled out, and what the timeline looks like.
What Is Included in the SA Expanded Pilot Scheme?
The government is offering a trio of life-changing services to qualifying households in five targeted provinces.
- Monthly Basic Income Grant (BIG) of R2,500 per adult
- Free monthly electricity allowance (up to 350 kWh)
- Free water credits (up to 12 kilolitres/month)
- No reconnection fee for previously disconnected services
- Priority access to mobile health clinics and school fee waivers
- Government-subsidized food parcels every 60 days
- Financial literacy training and SEDA-linked business support
Where Will the Benefits Be Rolled Out?
This phase targets five specific provinces with the highest poverty and service delivery backlogs.
| Province | Districts Covered | Electricity Cap | Water Cap | Monthly BIG | Target Beneficiaries |
|---|---|---|---|---|---|
| Eastern Cape | OR Tambo, Alfred Nzo | 350 kWh | 12 kl | R2,500 | 295,000 households |
| KwaZulu-Natal | uMzinyathi, Harry Gwala | 300 kWh | 10 kl | R2,500 | 245,000 households |
| Limpopo | Vhembe, Mopani | 350 kWh | 12 kl | R2,500 | 220,000 households |
| Free State | Lejweleputswa, Thabo Mofutsanyana | 320 kWh | 11 kl | R2,500 | 180,000 households |
| North West | Dr. Ruth Segomotsi Mompati | 300 kWh | 10 kl | R2,500 | 160,000 households |
Who Qualifies for This SA Expands Pilot Scheme?
To ensure fairness, the following eligibility criteria have been set under the Department of Social Development’s updated guidelines.
Qualification Criteria You Must Meet
- South African citizen or permanent resident
- Must reside in one of the five pilot provinces
- Household income less than R5,000 per month
- Not currently receiving UIF or a formal salary
- Valid South African ID or smart ID card
- Registered with local ward committee or indigent program
Priority Will Be Given To:
- Households with elderly persons (60+)
- Persons with disabilities (certified)
- Child-headed households
- Job seekers and informal workers
- SASSA grant recipients not receiving formal housing benefits
How to Apply for Free Water, Electricity, and R2,500 BIG
There are two methods to register for this pilot scheme — online and in-person. Applications are currently open and will close on October 10, 2025.
Step-by-Step Application Process
- Visit your nearest local municipality or ward councillor’s office
- Carry a certified copy of your ID and proof of residence
- Complete the UBS & BIG joint registration form
- Submit any medical certificates if applying under disability clause
- Receive SMS confirmation within 5–7 working days
- First payment and service activation by November 1, 2025 (if approved)
Online Application Option
- Go to: www.gov.za/basicincomepilot
- Log in using your eGov account or register a new one
- Upload scanned ID, utility bill, and income declaration
- Submit and track status under ‘My Benefits’
How Will the R2,500 Grant Be Paid?
The Department of Social Development confirmed payments will be made monthly on the 5th of each month, starting November 5, 2025.
| Month | Payment Date | Amount | Payment Method |
|---|---|---|---|
| November 2025 | Nov 5 | R2,500 | Bank Account / Postbank |
| December 2025 | Dec 5 | R2,500 | Bank Account / Postbank |
| January 2026 | Jan 5 | R2,500 | Bank Account / Postbank |
| February 2026 | Feb 5 | R2,500 | Bank Account / Postbank |
| March 2026 | Mar 5 | R2,500 | Bank Account / Postbank |
| April 2026 | Apr 5 | R2,500 | Bank Account / Postbank |
Government’s Goal Behind This Pilot Expansion
The National Planning Commission (NPC) states this expansion is a precursor to possibly launching a national Basic Income Grant (BIG) by 2027. Results from this trial will determine future budgeting and rollout models.
Key Objectives of the Pilot
- Test efficiency of unconditional income support
- Evaluate municipal-level capacity to deliver basic utilities
- Measure impact on employment, health, and school attendance
- Determine fraud risk, leakage, and duplication
- Create a future national UBS-BIG roadmap
Departmental Contact Details for Inquiries
For help with your application, payments, or service delivery, contact the respective departments below:
| Department | Contact Number | Website | |
|---|---|---|---|
| Department of Social Development | 0800 60 10 11 | [email protected] | www.dsd.gov.za |
| Department of Mineral Resources & Energy | 086 100 3276 | [email protected] | www.energy.gov.za |
| National Treasury (UBS Unit) | 012 315 5111 | [email protected] | www.treasury.gov.za |
| SASSA Grant Hotline | 0800 60 10 11 | [email protected] | www.sassa.gov.za |
| Indigent Register Info Line | 0800 00 5050 | [email protected] | www.cogta.gov.za |
What Happens If This Pilot Is Successful?
If the pilot yields positive results by March 2026, the next phase will include:
- Expansion to Gauteng, Northern Cape, and Mpumalanga
- Increase in monthly BIG amount to R3,000 for all adults
- Permanent free basic water/electricity nationally
- Reformed SASSA structure to merge with BIG systems
Key Milestones to Watch
| Event | Expected Date |
|---|---|
| Mid-pilot review | January 2026 |
| Final policy report to Parliament | March 2026 |
| Cabinet decision on national rollout | June 2026 |
| Budget proposal for national BIG | October 2026 Budget |
| Full national rollout (if approved) | April 2027 |
The government’s Basic Income + Universal Services combo pilot is seen by many as the most transformative social intervention since the introduction of the Child Support Grant. With nearly R13 billion earmarked for this test phase, pressure is on to deliver meaningful outcomes. Beneficiaries are hopeful, critics are watchful, and the world is watching South Africa’s big experiment unfold.
FAQs – SA’s Expanded Free Water, Electricity & R2,500 Basic Income Pilot
- Who qualifies for the R2,500 basic income and free utilities?
Only residents of the 5 selected provinces with monthly household income below R5,000, and valid South African ID qualify. - How can I apply for this pilot program?
You can apply at your local municipal office or online via www.gov.za/basicincomepilot with necessary documents. - When will the first payments and services start?
If approved, payments and services will begin from November 5, 2025. - Can I still receive this if I get a SASSA grant?
Yes, this pilot is separate and can be received in addition to SASSA grants. -
Is this available across all provinces?
No, it’s currently limited to five provinces only as part of the pilot rollout.