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The impact of the social relief & distress grant on poverty in South Africa

This paper examines the impact of the Social Relief & Distress grant on poverty reduction in South Africa amidst the COVID-19 global pandemic. A large number of individuals live below the poverty line in South Africa and the lockdowns used to combat the spread of COVID-19 have resulted in more p...

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Main Author: Fatch, Martha
Other Authors: Eyal, Katherine
Format: Thesis
Language:English
English
Published: School of Economics 2025
Subjects:
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access_status_str Open Access
author Fatch, Martha
author2 Eyal, Katherine
author_browse Eyal, Katherine
Fatch, Martha
author_facet Eyal, Katherine
Fatch, Martha
author_sort Fatch, Martha
collection Thesis
description This paper examines the impact of the Social Relief & Distress grant on poverty reduction in South Africa amidst the COVID-19 global pandemic. A large number of individuals live below the poverty line in South Africa and the lockdowns used to combat the spread of COVID-19 have resulted in more people living below the poverty line. This paper uses secondary data in South Africa, utilising all five waves of the NIDS-CRAM panel survey, with an initial sample frame of 7,073 participants. This data is used to estimate the impact of a new cash transfer on household poverty using a number of different techniques. In initial estimates, a strong negative correlation between receipt of the Social Relief & Distress grant and household poverty is observed, as expected. However, in multivariate analysis this negative association is reduced, with an effect found which is neither practically nor statistically significant. While the SRD could reduce some proportion of household poverty in certain samples, this effect is not large enough to meaningfully impact average household socio-economic status in South Africa. Increasing the grant size and broadening its reach could have a significant impact on household poverty and overall inequality.
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institution University of Cape Town (South Africa)
language English
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provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2025
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spelling oai:open.uct.ac.za:11427/42184 The impact of the social relief & distress grant on poverty in South Africa Fatch, Martha Eyal, Katherine poverty social relief distress grant poverty This paper examines the impact of the Social Relief & Distress grant on poverty reduction in South Africa amidst the COVID-19 global pandemic. A large number of individuals live below the poverty line in South Africa and the lockdowns used to combat the spread of COVID-19 have resulted in more people living below the poverty line. This paper uses secondary data in South Africa, utilising all five waves of the NIDS-CRAM panel survey, with an initial sample frame of 7,073 participants. This data is used to estimate the impact of a new cash transfer on household poverty using a number of different techniques. In initial estimates, a strong negative correlation between receipt of the Social Relief & Distress grant and household poverty is observed, as expected. However, in multivariate analysis this negative association is reduced, with an effect found which is neither practically nor statistically significant. While the SRD could reduce some proportion of household poverty in certain samples, this effect is not large enough to meaningfully impact average household socio-economic status in South Africa. Increasing the grant size and broadening its reach could have a significant impact on household poverty and overall inequality. 2025-11-12T09:51:22Z 2025-11-12T09:51:22Z 2025 2025-11-12T09:48:13Z Thesis / Dissertation Masters MCom http://hdl.handle.net/11427/42184 en eng application/pdf School of Economics Faculty of Commerce University of Cape Town
spellingShingle poverty
social relief
distress grant
poverty
Fatch, Martha
The impact of the social relief & distress grant on poverty in South Africa
thesis_degree_str Master's
title The impact of the social relief & distress grant on poverty in South Africa
title_full The impact of the social relief & distress grant on poverty in South Africa
title_fullStr The impact of the social relief & distress grant on poverty in South Africa
title_full_unstemmed The impact of the social relief & distress grant on poverty in South Africa
title_short The impact of the social relief & distress grant on poverty in South Africa
title_sort impact of the social relief amp distress grant on poverty in south africa
topic poverty
social relief
distress grant
poverty
url http://hdl.handle.net/11427/42184
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