The Department of Social Development failed to distribute R4.8-billion of its allocated social grant budget during the 2025/26 financial year. With a total available budget of R285.9-billion, the department ultimately spent R281.1-billion, leaving a significant portion of capital intended for vulnerable South Africans unutilised.
Reasons For Underspending And Administrative Challenges
Department officials briefed Parliament’s Portfolio Committee on Social Development on 25 June 2026, attributing the shortfall to a combination of lower-than-anticipated grantee uptake and stricter verification measures. The Social Relief of Distress (SRD) grant accounted for the largest share of the remaining funds, totalling R3.1-billion, though the department noted this amount remains payable to eligible beneficiaries in the upcoming financial year.
Further underspending was recorded across other critical categories, including R793-million for the old age grant, R533-million for the child support grant, and R318-million for the disability grant. Officials argued that bank account checks, biometric verification, and updated eligibility criteria were implemented to curb potential fraud and ensure the integrity of the state’s welfare distribution systems.
Political And Community Concerns
The decision to withhold substantial funds has drawn sharp criticism from opposition benches, who argue that the administrative hurdles are preventing the most vulnerable from accessing necessary aid. During the briefing, DA MP Nazley Sharif highlighted the discrepancy between the department’s public narrative on rising poverty and the actual expenditure data.
Government frequently argues that poverty and vulnerability are increasing and that more people need assistance. Yet almost R5-billion was not spent.
Community advocates have expressed concern that while security measures serve to protect the fiscus, they may be creating exclusionary barriers for the elderly and disabled who struggle to navigate complex digital verification processes. As the department prepares for the next audit cycle, pressure is expected to mount for a review of how these verification policies impact service delivery at a local level.