2022 French Government Measures: Boosting Purchasing Power and Social Benefits

2023-12-03 14:55:28

Since 2022, inflation has continued to put a strain on the purchasing power of the French. It is a difficult economic situation which has necessitated the early revaluation of retirement pensions and certain allowances, such as housing assistance (APL).

The conflict in Ukraine and the surge in energy prices have created a crisis situation which has seen the purchasing power of the French reduced considerably. To help the most vulnerable, the government has put in place several measures. In 2022, he launched an exceptional back-to-school bonus and an energy check, and increased basic pensions, housing assistance, social benefits and social minimums.

These increases, for example, amount to 3.5% for personalized housing assistance (APL) and 4% for family benefits, thus benefiting nearly 12.9 million households. On average, rights holders saw their income increase by around 160 euros in 2022.

According to the site The seniors’ echo, this revaluation was inevitable, but its anticipation by the government was an “immediate” boost to redress the financial situation of households. INSEE confirms, for its part, that this anticipated revaluation can be assimilated to a one-off boost: “ The anticipated revaluation measure is thus akin to a one-off payment of exceptional aid ».

Which French people benefit from these upgrades?

Furthermore, the statistics organization conducted a study to determine which households benefited the most from these increases, including the 2022 back-to-school bonus which affected more than 9 million households. The results indicate that: “ […] the strongest for the 30% of people with the lowest incomes: 190 euros per year for the first tenth of the standard of living [les 10 % les plus pauvres]. Or +1.7% of the average standard of living. Then, 170 euros for the 2nd tenth (+1.1%) and 130 euros for the 3rd tenth (+0.7%). Against 70 euros for the entire population (+0.3%) ».

In other words, the anticipated revaluation made it possible to increase the income of different categories of people depending on their standard of living. For the poorest 10%, the increase was 190 euros per year, equivalent to 1.7% of their average income. The next 10% saw an increase of 170 euros (1.1%), and the next 10% saw an increase of 130 euros (0.7%). For the entire population, the average increase was 70 euros per year, or 0.3% of their average income. In summary, this measure mainly benefited people with lower incomes, with larger increases proportional to their financial situation.

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