Universal Basic Income Plan – In what could become South Africa’s most ambitious social welfare initiative to date, the African National Congress (ANC) is accelerating plans to introduce a Universal Basic Income (UBI) grant by 2027. This bold move aims to permanently support millions of vulnerable South Africans with a monthly cash payment—possibly replacing or expanding the current R370 SRD grant system. The concept of UBI has long been debated globally, but for South Africa, it’s emerging as a possible solution to combat deepening poverty, unemployment, and economic inequality. With over 18 million people already receiving some form of social grant, and unemployment hovering above 32%, the government is now under growing pressure to implement a more inclusive and permanent social safety net. In recent policy forums, senior ANC leaders have pointed to 2027 as the likely implementation year—closely tied to political momentum before the next general elections. Unlike the SRD R370 grant—which is limited and renewed in short cycles—UBI would guarantee monthly income for a broader range of citizens, regardless of employment status. While the final amount and eligibility framework remain under debate, recent leaks suggest the ANC is eyeing a baseline between R480 and R750 per month, with possible top-ups for youth, disabled, or unemployed individuals. Let’s dive into the key details, timelines, implementation hurdles, eligibility ideas, and potential economic impact of this much-anticipated shift toward guaranteed income.
What Is Universal Basic Income Plan and Why Is ANC Pushing It Now?
UBI guarantees a fixed monthly income to every eligible individual regardless of employment status. The ANC sees it as a permanent anti-poverty solution post-COVID.
- UBI is not a new idea but has gained global traction since 2020.
- It would provide consistent cash monthly, replacing temporary schemes.
- ANC wants to make it a flagship initiative for 2027 elections.
- The current R370 SRD scheme would either merge or phase into UBI.
- It addresses joblessness, food insecurity, and economic exclusion.
- Treasury has warned of cost, but ANC sees it as an investment in dignity.
- Pilot programs are expected in 2026.
Proposed UBI Grant Amount, Structure, and Timeline
While not finalized, discussions point to a structured rollout plan starting with pilot groups in 2026 and full national adoption by mid-2027.
| Component | Proposal/Status |
|---|---|
| Target Launch Year | 2027 |
| Pilot Program Start | Early 2026 |
| Monthly Grant Value (Base) | R480–R750 (expected) |
| Youth/Unemployed Top-Up | +R250 (under discussion) |
| Total Annual Cost Estimate | R300 Billion (approx.) |
| Funding Mechanism | Tax reforms, wealth levy, VAT hike |
| Department in Charge | Social Development + National Treasury |
| Replacement of SRD R370 Grant | Yes, likely by 2027 |
Who Might Qualify? Expected Eligibility Criteria Under UBI
The ANC aims for broad inclusion, but there will still be criteria to prevent misuse and ensure the most vulnerable benefit first.
- South African citizens aged 18 and above.
- Permanent residents and recognized refugees (TBD).
- Monthly income below R7,000 likely required.
- Bank account verification and biometric ID may be mandatory.
- SASSA may partner with Home Affairs for cross-verification.
- Existing SRD recipients likely to be transitioned automatically.
- Those receiving old-age, child, or disability grants may still be eligible depending on income tiers.
Departmental Contact for Eligibility Queries
For updated eligibility rules and pilot announcements, citizens can contact:
- Department of Social Development
- Website: www.dsd.gov.za
- Call Centre: 0800 60 10 11
- Email: [email protected]
- South African Social Security Agency (SASSA)
- Website: www.sassa.gov.za
- Call Centre: 0800 60 10 11
- Email: [email protected]
What Will Happen to the SRD Grant and Existing Grants?
The government aims to consolidate or absorb the SRD grant into UBI, with possible restructuring of other grants to avoid overlap.
- SRD R370 payments may continue till early 2027 as a stop-gap.
- SRD applicants might be automatically converted to UBI.
- Child Support Grant and Disability Grant will continue.
- Basic Income Grant may include additional top-ups for disability.
- No double dipping—UBI + other major income support unlikely.
- Treasury is reviewing overlaps to avoid budget waste.
SRD vs UBI – Key Differences You Should Know
| Feature | SRD Grant | Proposed UBI |
|---|---|---|
| Monthly Value | R370 | R480–R750 (Base) |
| Eligibility | Limited (Unemployed + ID check) | Broader (income-based) |
| Duration | Temporary (renewed periodically) | Permanent (post-2027) |
| Application Process | Online via SASSA website | Likely automated + biometric |
| Income Threshold | R624/month | Possibly R7,000/month |
| Funding Source | Emergency Budget | New taxes, reforms, levy |
How Will Government Fund This Massive Shift?
A big concern is how to pay for it. Treasury and the ANC are debating a mix of revenue sources, and bold fiscal moves are expected.
- Wealth tax on high-net-worth individuals.
- Tax on luxury goods and services.
- VAT adjustment from 15% to 16% (under discussion).
- Possible payroll tax or UIF contribution increase.
- Reduction in state corruption and wasteful expenditure.
- Higher excise taxes on alcohol, tobacco, and sugary drinks.
- Cutting unused budget allocations in other departments.
Projected Budget Allocation and Funding Sources (2026-2028)
| Year | UBI Budget Estimate | Key Funding Channels |
|---|---|---|
| 2026 | R50 Billion (Pilot) | Reserve + Development Funds |
| 2027 | R180 Billion | VAT, Wealth Tax, Grant Reshuffle |
| 2028 | R300 Billion | Permanent Budget Line |
Potential Benefits and Risks of UBI in South Africa
The government believes UBI can transform society, but critics worry about long-term costs, inflation, and dependency.
Potential Benefits:
- Boosts local economy via direct spending.
- Reduces crime, hunger, and poverty-related unrest.
- Restores dignity to unemployed and informal workers.
- Encourages entrepreneurship and skill-building.
- Could increase mental health and school attendance.
Risks/Concerns:
- Strain on national budget and possible debt increase.
- Potential inflation in food and services.
- People may reduce work hours or stop working altogether.
- Risk of fraud, duplication, or mismanagement.
- Political instability if program is reversed after 2029.
What Do South Africans Think? Early Survey Feedback
Initial public and expert surveys show mixed reactions.
| Opinion Segment | Support Level (%) | Main Concern |
|---|---|---|
| Youth (18–30) | 78% | Job creation + cash safety net |
| Low-income households | 84% | Immediate relief needed |
| Economists | 42% | Fiscal sustainability and inflation risk |
| Business Owners | 39% | Tax burden concerns |
| Middle Class | 56% | Confused about funding and eligibility |
What Happens Next? Timeline of Events to Watch
The next 18 months will be crucial in shaping UBI rollout across South Africa.
- September 2025 – UBI policy green paper expected.
- February 2026 – Budget 2026 to include trial fund allocation.
- April 2026 – Pilot projects in 3–5 provinces.
- October 2026 – Nationwide review and cost assessment.
- March 2027 – Final UBI Bill in Parliament.
- July 2027 – Full national rollout (if passed).
Key Provinces Likely to See Early UBI Pilot Projects
| Province | Reason for Selection |
|---|---|
| Eastern Cape | High unemployment + rural hardship |
| Limpopo | Vulnerable populations, infrastructure ready |
| KwaZulu-Natal | Large urban-rural gap to test models |
| North West | Mining job losses + poverty levels |
| Free State | Testing provincial delivery systems |
The Universal Basic Income plan, if implemented as envisioned, could transform South Africa’s economic landscape and social support system. While serious financial, logistical, and political questions remain, the 2027 UBI plan has become a core part of the ANC’s future vision. If all goes according to plan, millions of citizens could receive guaranteed monthly income that empowers their financial freedom and restores dignity. However, all eyes will remain on funding decisions, pilot program outcomes, and the upcoming Budget 2026 for clues on what’s to come.
5 Most Asked Questions About South Africa’s UBI Plan
Q1. What is the expected amount of the UBI grant?
A: It is expected to range from R480 to R750 per month, possibly more for youth or unemployed.
Q2. Will the SRD R370 grant end in 2026?
A: Yes, it is expected to merge into the UBI system by 2027, pending parliamentary approval.
Q3. Who will qualify for UBI?
A: South Africans over 18 with income under a threshold (likely R7,000) may qualify.
Q4. How can I apply for UBI once launched?
A: Likely via SASSA’s online portal or automatic enrollment if you’re already receiving SRD.
Q5. Can I get UBI and other grants at the same time?
A: Possibly, but government may restrict duplication to ensure fair distribution.