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28 January 2025

CAF Allocations To Increase Amid Rising Costs

Changes starting February 2025 aim to assist vulnerable households facing inflation pressures.

Good news for many families and low-income households in France: starting from February 5, 2025, several allocations from the Caisse d’Allocations Familiales (CAF) will see an increase. This raise has been decided amid the continuous rise of the cost of living, aiming to support the most vulnerable households. These increases represent welcome relief for the most modest households and demonstrate the government's commitment to tackling social inequalities. If you benefit from one of the allocations mentioned below, don't hesitate to gather information to take advantage of these new measures.

The Complement Familial, aimed at households with at least three dependent children, will see its amount rise. This aid is allocated based on income conditions, with income ceilings adjusted to family composition. The revaluation affects both the base amount and the income thresholds, allowing more families to qualify. This increase aims to lighten the financial burden related to children's education expenses.

The Allocation aux Adultes Handicapés (AAH), which is indispensable for people with disabilities, will also witness a rise. Currently set at €971.37 per month, it is expected to increase by several euros, following the official indexation rate. This aid benefits disabled adults over the age of 20, whose disability rate is 80% or higher, or between 50% and 79% under certain conditions. The boost aims to adequately cover the basic needs of the beneficiaries.

The Prestation d'Accueil du Jeune Enfant (PAJE), which includes the birth bonus, the basic allowance, and the free choice of care supplement, will also see increases. This assistance is targeted at parents of young children, helping them manage the costs associated with childbirth and raising infants. The revaluation will primarily benefit low-income families, with eligibility criteria adjusted accordingly.

Beyond the amounts disbursed, the income thresholds for receiving these aids will also be raised. This measure allows households whose income has slightly increased (due to, for example, a wage raise) to continue receiving their benefits. The aim is to avoid "poverty traps," where a slight rise in wages excludes households from social support. These revaluations stem from the government’s desire to bolster household purchasing power amid high inflation. They take the yearly evolution of consumer prices, as stipulated by law, fully under consideration.

The CAF plays a key role by adapting its benefits to guarantee minimum financial security for the most vulnerable households. To find out if you are eligible for these increases, visit the official CAF website. An online simulator can estimate your entitlements based on your family situation and income. Remember to update your personal information (income, family composition) to allow accurate assessment of your rights.

Every year, CAF beneficiaries wait with either anticipation or apprehension for social aid adjustments. This year, 2025, is no exception. Effective February 1, new amounts will come to fruition across several benefits, including family allowances and housing assistance (APL). The revisions for this year are tied to the increase of the resource ceilings, certified by an order published in the Official Journal on December 27, 2024.

This recalculation, based on 2023 inflation estimated at +4.9% by INSEE, leads to resource ceilings being raised by 4.8%. This mechanism allows adjustments to be made to aid, reflecting economic realities, all the time employing tax data from two years prior.

But it’s not all good news—some beneficiaries will find themselves worse off. Households whose reported income increased significantly in 2023 may notice reductions in their benefits or even lose eligibility for certain allocations if they surpass the new ceilings. To verify the precise revised amounts and your situation, visit the official CAF website.

The aids affected by this revaluation include:

  • Family allowances: awarded based on the number of children and income.
  • The Complement Familial: targeted at low-income families with at least three children.
  • The Allocation aux Adultes Handicapés (AAH), if annualized.
  • Housing assistance (APL, ALF, ALS).
  • The Libre Choice of Care Supplement (CMG).
  • The Basic Allowance provided for young children.

Automatic updates are implemented, but caution is advised concerning personal information. The recalibration of rights is performed automatically by the CAF, working alongside the fiscal administration. Nonetheless, beneficiaries must be proactive and verify their personal data, as failure to report income can result in payment errors. Reminders via SMS, email, or through the personal account section of the CAF website have already been sent to those who are tardy.

Approximately 12.9 million households currently receive social benefits from the CAF, according to data published by INSEE last October. This annual revision of eligibility criteria is, hence, significant for millions of French households.

Therefore, the new applicable amounts set for February 1 mark a significant adjustment of social aid, reflecting changes to both income and inflation. Remember to check your rights and update your situation with the CAF to avoid any unpleasant surprises.