It was better before COVID: The impact of the social relief of distress grant on the lives and livelihoods of South African day labourers in Tshwane

Abstract

Persistent high unemployment in South Africa rendered many in the informal economy structurally vulnerable to shocks such as the COVID‐19 pandemic. The social relief of distress (SRD) grant was a government attempt to alleviate the pandemic's fallout. Given the lack of scholarly information on the impact and reach of the SRD grant within the informal economy, particularly on day labourers, this study investigates the impact of the SRD grant on the lives and livelihoods of South African day labourers in Tshwane, South Africa. The study adopted a qualitative research design, utilising in depth interviews, transcription, inductive qualitative coding and thematic analysis. Many day labourers could not access the SRD grant due to, for example the loss or absence of identity documents, and/or lack of Internet access and information on the application process. For those who received it, some pressure relating to the cost of transport and basic needs was alleviated. Occasionally, day labourers use it to supplement other funds to acquire specialised tools. Importantly, the grant was not a disincentive to continue their work‐seeking activities. The findings question the effectiveness of policy responses to economic crises within the informal sector.