‘They mustn’t stay there without hope’: Mbalula backs basic income grant for youth without matric

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Opens in new windowOpens in new windowOpens in new windowOpens in new windowOpens in new windowOpens in new windowEnter fullscreen mode displaying this image.ExpandANC secretary-general Fikile Mbalula. File picture: Refilwe Kholomonyane Story audio is generated using AI

ANC secretary-general Fikile Mbalula has called for young people who leave school without matric to receive financial support through a basic income grant, saying they should not be left without hope or opportunities to build their futures.

Addressing community members at Emamnedwini Hall in uMshwathi, KwaZulu-Natal, before the November 4 local government elections, Mbalula said: “Where we are going now, we are going towards a basic income grant because children are having children while they themselves are still young.

“They leave school without matric. Those children, we are going to take them and give them a stipend in the form of a basic income grant so that they can grow. They mustn’t stay there without hope because they don’t have matric.”

Mbalula said the government was also working on training opportunities and called on municipal councillors to help young people access jobs and income-generating opportunities.

Some employment initiatives were already under way and should not be presented as promises that would only be fulfilled in the future.

Mbalula also urged municipalities to prioritise unemployed people when opportunities became available, saying young people should not be excluded because they lack work experience.

Finance minister Enoch Godongwana left the future of a permanent basic income support scheme unresolved when he tabled the 2026 medium-term budget policy statement (MTBPS) in parliament on Wednesday.

Instead of announcing a transition to a permanent programme, the National Treasury confirmed that the R370 social relief of distress (SRD) grant would be extended for another year, until March 2028.

The extension provides continued support to existing beneficiaries but does not establish a permanent basic income grant.

Treasury said it would continue working to link SRD beneficiaries to employment, training and business opportunities through MzansiXchange, which is a government data exchange platform intended to support beneficiary verification and connect people to economic opportunities.

The uncertainty surrounding a permanent grant comes as South Africa continues to grapple with high youth unemployment.

Official labour figures for the second quarter of 2026 showed that unemployment among people aged 15 to 34 rose to 47.4%, an increase of 1.5 percentage points from the previous quarter.

The number of unemployed young people increased by 264,000 to 5-million.

Treasury has also flagged legal and fiscal risks surrounding the SRD grant while the government awaits the outcome of its appeal against a high court ruling on the grant’s regulations.

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The ruling, if upheld, could expand the number of people eligible for assistance and significantly increase the programme’s cost. Preliminary estimates cited in the MTBPS suggest the annual funding requirement could rise from about R36bn to R74bn partly because millions more people could qualify.

The potential increase in expenditure is one of the fiscal considerations facing the government as it weighs the future of income support for unemployed people.

Mbalula’s comments refocus attention on the role a basic income grant could play in supporting young people excluded from employment and training opportunities.

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