Budget Speech 2025: HUGE old age grant increase from 1 April
In the 2025 Budget Speech, Finance Minister Enoch Godongwana confirmed that the old age grants along with other social grants will increase.
Good news for beneficiaries, as confirmed in the 2025 Budget Speech, a massive old age grant increase will come into effect on 1 April.
The social grants increases were announced by Finance Minister Enoch Godongwana when he delivered the National Budget in Cape Town on Wednesday, 12 March.
OLD AGE GRANT TO INCREASE FROM 1 APRIL
During his speech, Godongwana confirmed that VAT will increase by one percentage point; a half percentage point in the 2025/2026 financial year and another half the following year. This means in 2026 VAT will increase to 16%.
He said government is very aware of the cost of living pressures faced by households, including high food and fuel prices and rising electricity and transportation costs.
To “cushion” the poor against the VAT increase, Godongwana said social grants are allocated R284.7 billion in 2025/2026.
These are the social grants increases for 2025:
- Old age grant increases by R130 on 1 April to R2 315
- Disability grants will also increase by R130
- Child support grant increases by R30 to R560
- Foster care grant will also increases by R70
- Covid-19 Social Relief of Distress Grant – R370
Regarding the SRD grant, Godongwana said it will be extended by another year to March 2026 and is allocated R32.5 billion.
“As announced by the President in the State of the Nation Address, the SRD will be used as a basis for the introduction of a sustainable form of income support for unemployed people.
“The future form and nature of the SRD will be informed by the outcome of the review of active labour market practices. This is expected to be completed by September 2025,” he said.
THE PREVIOUS FIGURES GODONGWANA INTENDED TO TABLE IN THE INITIAL 2025 BUDGET SPEECH
In his initial speech on 19 February, Godongwana intended to announce that National Treasury would inject a massive R23.3 billion into the social grants and welfare programmes that support almost half of South Africa’s population, Independent Online reported.
The increase was reportedly aimed at shielding millions of social welfare beneficiaries from the proposed VAT increase.
“Spending on social grants is allocated an additional R23.3 billion. This is to ensure that low-income households are not left worse off by the increase to the VAT rate,” Godongwana intended to say in February.
The government’s old age grant was set to increase by R150 throughout the year, with an immediate R140 increase in April and an additional R10 increase in October, while the child support grant would have increased by R50.
This is how much social grant beneficiaries would’ve received from 1 April had Godongwana tabled the same figures:
- Old age grant increases by R140 on 1 April and R10 in October 2025
- Child support grant increases from R530 to R580
- Foster care grant increases by R80
- Covid-19 Social Relief of Distress Grant – Remains at R370
DO YOU THINK THE SOCIAL GRANTS INCREASES FOR 2025 WILL HELP RECIPIENTS COPE WITH THE HIGH COST OF LIVING?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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