2023-10-12 15:23:47
The Jean Jaurès Foundation published a worrying simulation this Thursday. According to her, more than 200,000 people might fall into poverty. poverty lack of anticipated revaluation of social minimumswarns the associative collective Alerte.
Social minimums, including active solidarity income (RSA), were revalued by 1.6% in April 2023, an increase taking into account the 4% increase granted “early” in 2022 in the face of price increase. At the end of September, the Minister of the Economy Bruno Le Maire announced that social minimums would be increased on April 1, 2024 “by around 4.6%”, an increase considered very insufficient and late by associations helping the most precarious.
Plummeting purchasing power
“Households have suffered a sharp increase in prices for two years which has not translated into an equivalent increase in social minimums,” underlines the Alerte collective, which brings together 34 associations fighting once morest poverty, on the Foundation’s website. Jean Jaurès, think tank classified on the left.
“In the end, a revaluation in April 2024 risks being too late given the increase in precariousness which is seen very concretely in the increased recourse to food aid”, adds the collective, in favor of an anticipated revaluation to the same level. inflation, which should stand at 5% for the year 2023 according to INSEE.
160,000 people below the extreme poverty line
The collective and economist Pierre Madec from the French Observatory of Economic Conditions (OFCE) used the Ines microsimulation model, developed by INSEE, Drees (statistical service of social ministries) and the CAF (Family Allowance Fund), to simulate the impact of an increase in social minimums to 1.6% and 5%.
In this simulation, salaries “would increase like inflation at 5%, housing benefits by 3.5% and pensions by 0.8%. Poverty thresholds would increase by 3.5%,” we can read. As a result, the loss of purchasing power of social minimum recipients “might lead to 200,000 people below the official poverty line (at 60% of the median standard of living, or less than 1,102 euros per month for a single person in 2019) and 160,000 below the extreme poverty line (at 50% of the median standard of living, less than 919 euros per month for a single person, in 2019),” write the collective and the economist.
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