Universal Basic Income Can Replace The SRD Grant In 2024
The South Africa Social Security Agency ( SASSA) has announced Social Relief of Distress during the peak time of COVID-19 for financial support. The grant was announced only for one year, but they are still in progress. Can Universal Basic Income (UBI) replace the SRD grant in 2024?
After the general election in 2024, the African National Congress (ANC) lost, and he created a new government. Now, the National Congress has introduced a new grant called Universal Basic Income (UBI). So, many are wondering if the SASSA SRD grant will change; it will be altered to Universal Basic Income soon.
What Is Universal Basic Income & Their Purpose?
After in South African May election in 2024, his huge impact produced that will alter SRD grant to Universal Basic Income. The Universal Basic Income UBI is the main purpose to provide financial freedom in the overall country without any strict eligibility criteria.
The main purpose of the “UBI & ANC” is to announce a long-term solution to the South African economy. If UBI is implemented, South Africa will become the first country to provide huge financial support to their people through UBI. However, the payment mostly includes adults aged between 18 to 59 years to be considered UBI grant.
Will UBI Replace The SRD Grant?
The Social Relief Of Distress (SRD) is nowadays a lifeline for millions of Africans because they are supporting multiple needy people for financial freedom for life. The SRD grant was introduced during the peak time of COVID-19 and provided financial support to those in most need. The SRD offers support only for basic monthly food needs.
In the recent government, ANC has introduced (UBI) to replace the SRD grant by expanding financial support to all adults, according to their income level. The SRD financial funds distribution is too difficult, so this means-testing process for SRD financial funds distribution is simple. However, it may take at least one or two years to replace SRD with UBI slowly.
Why is The SRD Grant Transition To UBI? Key Benefits
There are multiple impacts will be produced by the transition of UBI, including the following:
Eliminating Poverty
UBI is more advanced as compared to the SRD grant. UBI can see more futures and offers comprehensive solutions to poverty to be eliminated.
Without Internet Acess
The current situation of the digital process of SRD grants is too difficult due to the lack of the internet. Those who aren’t included where the internet is not provided and exclude the needy people. So, UBI was introduced, easily accessible where is not dependent on the internet and easily receive their grant.
Economic Benefits
UBI can directly impact production and boost economic growth by increasing spending power between low-income and unemployed households. So, it is a better option for South Africa for the SRD grant to transition to Universal Basic Income to support the needy people of the entire country.
Social Inclusion
UBL also reduces the Social Reputation will receiving the Social benefits from welfare and promotes a sense of inclusion and dignity among recipients.
Is There Any Possibility Of UBI To Deliver Financial Support?
Yeah! It’s several challenges for governments to deliver financial support to anyone living in the entire country, so the government has introduced a Universal Basic Income UBI grant.
Founding And Budgets Restrictions: The collection of huge amounts at the time is a huge challenge for governments, which may face problems, but every problem has solutions.
Buildup Problems: Introducing the Universal grant may face buildup problems due to the time huge project buildup takes time.
Social Equity Concerns: It’s a complex task for the governments that ensure UBI reaches the intended grant beneficiaries.
Global Perspectives on UBI
It is not only South Africa alone country; Global has already experimented with (UBI) and explored its Policies:
- Kenya: Kenya already has experimented with UBI; recipients used funds to improve their income, reduce poverty, start small businesses, and produce a huge impact the Kenya’s economic growth.
- Spain: During the peak time of COVID-19, Spain introduced the (UBI) scheme to give a 1,015 euro per month grant who mostly need it.
- United States: The U.S. also distributed $1,200 to millions of needy people, but this is short-term financial relief.
Frequently Asked Questions-FAQs
What is Universal Basic Income (UBI)?
The UBI is a scheme that offers social grants regularly to replace the SRD grant by expanding financial support to all adults according to their income level and needs.
Will UBI replace the SRD grant?
The SRD grant introduced the peak time of COVID-19 to provide financial support on a monthly basis, but UBI is nowadays very famous and has not been confirmed to replace the SRD grant.
Who will qualify for UBI in South Africa?
It depends on the age who will qualify the age between 18 to 59 years old, so they are eligible for UBI or low-income level.
