The Universal Basic Income Coalition (UBIC) has raised concerns about the South African government's 2026 Budget, arguing that newly implemented measures aimed at saving costs in social grant programs will negatively impact eligible beneficiaries. The coalition emphasizes that the government's revised fiscal position should ideally be leveraged to enhance support for the most vulnerable populations, rather than sidelining them in favor of increased benefits for the middle and upper classes.

According to UBIC, while social grant payments are set to slightly rise above the current inflation rate of approximately 3.5% starting in April, the increases offered—a rise in the Old Age Grant from R2,315 to R2,400 and the Child Support Grant from R560 to R580—are insufficient. They point out that these increments do little to offset prior adjustments that lagged behind inflation rates. Furthermore, the rising cost of food, which has escalated more dramatically than the general inflation rate, exacerbates the hardships faced by those reliant on these grants.

The coalition's statement underscores a greater issue of socioeconomic inequity in South Africa, as they argue that while government actions have purportedly aimed at fiscal responsibility, the focus has disproportionately favored wealthier citizens through tax relief and allowances. UBIC's criticism highlights the need for immediate attention to social grant policies to ensure they adequately support vulnerable populations, particularly during periods of economic strain.