Universal Basic Income Grant Removed by SASSA – What Replaces It in May 2025

Universal Basic Income Grant – A major change in South Africa’s social relief framework has been confirmed: the Universal Basic Income Grant (UBIG) has officially been discontinued from May 15, 2025. The decision, made by the South African Social Security Agency (SASSA) and the Department of Social Development, is part of a broader shift toward a more targeted and financially sustainable system of welfare distribution. The replacement? A brand-new program called the Income Stabilisation Support Program (ISSP) – aimed at supporting the unemployed, underemployed, and vulnerable citizens more effectively.

The removal of UBIG has stirred a mix of concern and curiosity across the country, especially among the millions who relied on it during economically turbulent periods. As the new program kicks in, understanding how it works, who qualifies, and how to apply becomes crucial for every South African household affected by this transition.

Why Was the UBIG Grant Removed?

The Universal Basic Income Grant was originally launched as a temporary measure to help mitigate the financial impact of the COVID-19 pandemic and rising unemployment. While it provided monthly relief to millions, analysts and government bodies raised concerns about its long-term feasibility.

Core Reasons Behind the Phase-Out:
  • Unsustainable Fiscal Burden: The monthly cost of funding UBIG ran into billions, straining national resources.
  • Lack of Targeting: The flat-rate model didn’t adequately differentiate between high-need and low-need individuals.
  • Low Impact on Economic Mobility: UBIG recipients remained financially dependent, with limited improvements in employment statistics.
  • Duplication with Other Grants: Overlaps with existing grants created confusion and redundancy in the system.

The Department of Social Development, after consultations with financial and economic experts, agreed to restructure income support into a more refined and dynamic model.

What Will Replace the Universal Basic Income Grant?

To address these gaps, the government has introduced the Income Stabilisation Support Program (ISSP) – a structured, needs-based initiative designed to provide monthly assistance while encouraging self-reliance.

Highlights of the New ISSP System:
  • Variable Payment: Between R750 to R1,250 per month based on income, location, and family size.
  • Means-Tested: Focused strictly on those earning less than R3,500/month.
  • Dynamic Eligibility: Evaluated every six months based on updated data.
  • Multiple Disbursement Channels: Payments via SASSA cards, bank deposits, or retail partners such as Pick n Pay and Boxer.

The goal is not just to provide relief, but to promote economic resilience through tailored assistance that reflects real household needs.

Old vs New Program: Comparative Overview

Criteria UBIG (Old Scheme) ISSP (New Scheme)
Payment Amount Fixed R1,070 R750 to R1,250 (Variable)
Age Eligibility 18–59 21–60
Employment Status Any Unemployed/Underemployed only
Means Testing Required No Yes
Reassessment Frequency Rare Every 6 Months
Grant Duration Unlimited Renewable 6-Month Cycle
Application Mode Online/Walk-in Online/Walk-in
Supported by Financial Plan No Yes (Treasury-backed)

Primary Goals of ISSP

  • Ensure funding reaches the most vulnerable
  • Eliminate overlapping and double-dipping grants
  • Maintain accountability through regular audits
  • Strengthen the link between aid and job-readiness programs

Categories Prioritized Under ISSP

  • Unemployed Youth (21–35 years)
  • Informal Sector Workers (e.g., hawkers, day laborers)
  • Households with no income source
  • Families with multiple dependents
  • Widows and single parents with no formal job

New ISSP Payment Scale Table

Household Type Monthly Income Grant Amount (ISSP)
Single Adult, No Income R0 R1,250
Single Adult, Informal Work R1,500 R1,000
Family of 3, No Formal Income R0 R1,250
Family of 3, Partial Income R2,800 R900
Young Graduate, Unemployed R0 R1,200
Single Mother, Low Wage Work R3,200 R750
Elder Dependent (No Grant) R0 R1,100
Mixed Household (Some Grants) R2,000 R800

Who Qualifies for the ISSP Grant?

To be eligible for the new Income Stabilisation Support Program, you must meet all the criteria below:

  • Aged 21 to 60 years
  • South African citizen or legal permanent resident
  • Not employed in the formal job market
  • Household income below R3,500/month
  • Must not be receiving Old Age, Disability, or War Veteran grants
  • May receive Child Support Grant alongside ISSP
  • Must pass SASSA’s updated verification system

How to Apply for the ISSP Grant

Applicants can now apply through both online platforms and walk-in centres. The digital process has been improved with a more user-friendly interface.

Online Application Steps:

  1. Go to www.sassa.gov.za
  2. Click on “Apply for ISSP Grant”
  3. Fill out the form with your ID number, income details, and address
  4. Upload required documents:
    • ID Proof
    • Income declaration
    • Proof of residence
    • Dependent documentation (if any)
  5. Submit the form and wait for SMS or email confirmation
  6. Receive funds through your selected payment method upon approval

Required Document Checklist

Document Required (Yes/No)
Valid SA ID Yes
Proof of Address (utility bill) Yes
Income Declaration/Bank Slip Yes
Mobile Number Linked to ID Yes
Child Certificate (if applicable) If applicable
Proof of Disability (if needed) If applicable
Banking Details Optional

ISSP Payment Timeline – Monthly Breakdown

Month Deadline to Apply Payment Disbursal Remarks
May 2025 10 May 15 May Launch month
June 2025 7 June 12 June Some delays possible
July 2025 10 July 15 July Full cycle begins
August 2025 8 August 14 August Early payments for some
September 2025 5 September 10 September Mid-year reassessments begin
October 2025 10 October 15 October Fraud audits during this cycle
November 2025 6 November 12 November Pre-festive month cycle
December 2025 4 December 9 December Holiday advance disbursals

What Happens if You Miss the Deadline?

Applicants who miss a monthly deadline must wait until the next intake. SASSA will not issue back pay for skipped months unless you qualify for an exceptional appeal.

Where to Track ISSP Application Status:

  • Visit www.sassa.gov.za/status
  • Use your 13-digit ID number
  • Provide your registered mobile number
  • Click on “Track My Grant”

Additional Benefits for ISSP Beneficiaries

Those enrolled in ISSP may also become eligible for:

  • Free job-readiness programs
  • Priority access to food parcel distributions
  • Basic health screenings and check-ups
  • Youth internship opportunities through SETAs
Departmental Contact Details

SASSA National Head Office
Private Bag X55662
Arcadia, Pretoria, 0083
Phone: 0800 60 10 11 (Toll-Free)
Email: [email protected]
Website: www.sassa.gov.za

For Regional Inquiries
Visit the official SASSA site and navigate to the “Regional Offices” section for province-specific numbers.

Frequently Asked Questions (FAQs)

Q1: Can I apply for ISSP if I’m already receiving Disability Grant?
No. ISSP is only for individuals not covered under other full social grants.

Q2: Is it necessary to have a bank account?
No, but having one ensures faster payments. You can also use SASSA cards or collect payments at partner retailers.

Q3: Will I lose ISSP if I find a job?
If your job pays above R3,500/month, you’ll be disqualified in the next cycle after reassessment.

Q4: How will SASSA verify my income?
Through banking records, UIF, and SARS databases, along with manual income declarations.

Q5: Can two people in one household receive ISSP?
Yes, if both meet eligibility separately and household income limits are respected.

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