• After more than two years of Covid-19 and months of war in Ukraine, the purchasing power of the French has taken a hit.

    In September, inflation could even reach 7%.

  • To respond to the rise in prices, the government has therefore drawn up a host of measures.

    Some have already been unveiled, others will be presented in the “purchasing power” bill next July.

  • Purchasing power aid, rent caps…

    20 Minutes

    covers state support to improve the standard of living of households in France.

She runs, she runs, inflation… According to the latest figures from the National Institute of Statistics and Economic Studies (Insee), it should reach 7% in September.

And to deal with the inevitable rise in prices, the Borne government will present a bill on July 6 to improve the purchasing power of the French.

Ceiling on rents, "tariff shield", Macron bonus or TV license fee removed...

20 Minutes

takes stock of the measures unveiled by the government to help households cope with inflation.

On the energy side

The government has decided to extend at least until the end of August the fuel discount of 18 cents (in mainland France), introduced since April 1.

Some 3 billion euros were budgeted for the period from April to June, which will therefore have to be supplemented in the amending finance law.

In addition, the extension until the end of the year of the "tariff shield" (cap on electricity and gas prices) has been approved, at a cost estimated at more than 14 billion euros over the year. 2022, according to an estimate from Bercy last March.

An amount that can change according to variations in the price of gas.

Finally, the ceiling of the tax-exempt individual transport bonus that the employer can pay to the employee will increase from 200 to 400 euros for 2022 and 2023, and will be cumulative with the compulsory payment of 50% of the subscription to public transport. .

Plus 4% for basic pensions and other social benefits

Retirement and disability pensions under the basic schemes will be increased by 4% from 1 July.

This increase, combined with that of just over 1% in January, is approaching the level of inflation, which reached 5.2% in May.

Family benefits and social minima, namely the active solidarity income (RSA), the allowance for disabled adults (AAH) and the solidarity allowance for the elderly (Aspa) will also be increased by 4%.

At the same time, the government intends to upgrade personalized housing assistance, in order to support tenants who need it the most.

These APL should be revalued from July 1, also by 3.5%, which for the state budget would represent an additional expense of 168 million euros, according to the same sources.

And the Macron bonus?

The ceiling of the exceptional tax-free and desocialized purchasing power bonus, known as the Macron bonus, must be tripled.

Companies will therefore be able to pay up to 3,000 euros to their employees, and even up to 6,000 euros for those who have set up a profit-sharing or participation scheme.

Note that the average level paid per employee in 2021 was only 506 euros, against 1,000 authorized, according to the Ministry of Public Accounts.

The rent cap

Latest measure: The “rent shield”.

This Monday, the government announced a cap on rent increases at a maximum of 3.5%, for one year, to limit the impact of inflation on tenants, we learned on Sunday from ministerial sources.

“Rents will be frozen.

We will not be able to exceed +3.5%, whereas if we look at the levels of inflation, we could have +4, +5, +6%”, declared Bruno Le Maire.

"We must protect our compatriots who are the most fragile", added the minister, stressing that this 3.5% was a "compromise" and that the government had taken into account the "interests of everyone".

The salary of civil servants

The salary of 5.7 million public officials will be increased by 3.5% from July 1, the Ministry of Public Service announced on Tuesday.

These 3.5%, which according to the ministry constitute the largest percentage increase for 37 years, “add up” to the average increase of 1.5% observed each year on the salaries of civil servants and contract workers.

They represent, from the same source, a total cost of 7.5 billion euros shared between the State and the communities.

Government and opposition are preparing the battle over purchasing power https://t.co/Qd22BdzBiI

— 20 Minutes (@20Minutes) June 28, 2022


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The revaluation premium activity

Like pensions and social minima, the activity bonus will benefit from a boost.

According to a government source, this aid paid to the most precarious workers will be increased by 4% “this summer with retroactive effect from July 1”.

An increase which corresponds to the anticipation of inflation projected on 2022, reveals the newspaper

Les Echos

.

The TV license fee abolished

The abolition of the audiovisual license fee will finally be effective next fall, with a gain for households of 138 euros, i.e. a shortfall of more than 3 billion euros that the State promises to compensate with public broadcasters.

And for students?

Prime Minister Elisabeth Borne has asked her government to work on measures for students.

An extension of the university restaurant ticket at 1 euro is in the pipeline.

The return of the food check

According to the daily Les Echos, a food check of 100 euros, plus 50 euros per dependent child, should be paid to nine million households, for a total cost of one billion euros.

The recipients of the RSA, the AAH, the minimum old age and the APL would be concerned.

In 2020, during the Covid-19 crisis, a similar bonus of 150 euros per adult and 100 euros per child concerned just over four million households.

This measure had been announced by Emmanuel Macron in December 2020 before the Citizen's Climate Convention.

"The idea is to say that today you have nearly eight million of our fellow citizens who have difficulty in having access to local productions, to quality productions, to our French productions in reality and therefore they need to give a boost to help them acquire this, ”explained, Sunday April 17,

on France 3

, Julien Denormandie, Minister of Agriculture.

Economy

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  • Economy

  • Inflation

  • purchasing power

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  • Bruno the Mayor