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Politics
01 March 2025

France Announces Key Changes To Social Welfare Programs For 2025

Significant reforms will adjust benefits and criteria for families facing rising living costs.

France is set to implement significant changes to its social welfare system beginning on April 1, 2025, with multiple benefits managed by the Caisse d'Allocations Familiales (CAF) receiving adjustments and new regulations. This includes increases to the Revenu de Solidarité Active (RSA), the prime d'activité, and the Allocation Adulte Handicapé (AAH), among others.

Notably, the RSA will rise from €635.71 to €647.15 for single individuals, and for those with dependent children, it will increase from €953.57 to €970.73. Couples without children will see their benefits go from €1,144.85 to €1,165.46. The prime d'activité, intended to supplement the income of low-wage earners, will see its maximum allotment jump from €622.63 to €633.84. Meanwhile, the AAH will be increased to €1,034.34, reflecting an increase of €18.29.

While these adjustments will provide some relief amid rising costs, the increase of 1.8% is less than the 1.9% initially anticipated, reflecting slower inflation rates. The basis for these calculations stems from the average inflation rate over the past year, measured from February 2024 to January 2025, excluding tobacco. This revaluation is stipulated under Article L161-25 of the Social Security Code.

Additional increases will benefit other social services as well, including universal urgent aid for victims of domestic violence, provisions for palliative care, family allowances, and back-to-school assistance. Despite these increases, some recipients may feel the adjustments do not sufficiently meet the rising costs of living, particularly when compared to last year's larger increase of 4.6% driven by higher inflation.

Another major adjustment involves the energy check, which assists modest households with their energy bills. For the first time, this annual payment will be delayed until the second half of 2025, due to late adoption of the finance law for the year. This push to June creates anxieties for families relying on this aid, especially amid persistent high energy prices. The French National Energy Mediator announced this shift to mitigate budgeting challenges for numerous households, especially those already strained by rising costs.

Traditionally, the energy check was automatically distributed, based on households' income tax reference and their property tax, to determine eligibility. The removal of the tax has complicated matters, excluding nearly one million households from automatic assistance last year. For 2025, the government plans to cross-check data with the electricity meter delivery numbers to identify eligible households, but this new method will only encompass approximately four million households, leaving 1.5 million families potentially without automatic support. Those not receiving checks automatically will have to navigate online requests or mail submissions to secure their assistance.

On top of restructuring the energy check, the budget allocated to this program will also be reduced by 22%, dropping from €787 million to €615 million, limiting the funds available for those who qualify under the new criteria. Although these budget reductions aim to target aid more effectively to the most vulnerable households, associations have raised alarms of potential oversights, warning of the risk of leaving behind families who do not fit neatly within the revised targeting system. Further amendments include restricting the use of energy checks solely to pay energy bills and prohibiting their allocation for financing energy renovation work.

Changes are also anticipated for family allowances. The government hopes to adapt the family support system to meet newer demographic and economic realities. Proposed reforms would allow for family allowances to be granted at the birth of the first child, providing families with 70 euros monthly without any income requirement. Currently, benefits are only available to those with at least two children.

To strengthen overall family support, particularly for larger households, the CAF will introduce new calculating methods to progressively increase the payments for families with multiple children. These adjustments will coincide with revaluations of the Allocation de Rentrée Scolaire (ARS) to assist families with schooling expenses amid inflation's impact.

Beyond financial aid increases, the reform seeks to improve parental employment opportunities, with personalized follow-up measures offered to job seekers. The Complement de Libre Choix du Mode de Garde (CMG), which assists with childcare costs, will be increased to alleviate those expenditures allowing parents to balance work-life commitments more effectively.

By 2025, the distribution schedule for family allowances will also see modifications ensuring improved regularity. This new payment timeline will take weekends and holidays more thoroughly provide predictable financial planning for families.

The government's attempts to adjust welfare programs reflect its commitment to adapting social policies to fit contemporary needs. Nevertheless, the breadth of these changes will hinge on parliamentary approval and effective implementation over the coming months. Families must remain vigilant, tracking changes to understand their benefits and adjust their finances accordingly.