Activity bonus not indexed to inflation in the draft budget

The activity bonus will not be indexed to inflation in the draft budget presented on Thursday, Labor Minister Jean-Pierre Farandou said on France 2 on Wednesday, adding that priority would be given “to the most deprived”. The activity bonus, paid to around 4.5 million people, will not be indexed to inflation “in the initial copy” of the draft budget, the minister said.

“Why are we doing this? This is not lightheartedness, I remind you that the challenge is to restore the accounts of this country, whose deficits are slipping, whose debt is soaring. So you need a form of courage,” he explained. “We know that in Parliament, there will be debates and amendments,” he added, stressing that the initial copy could be amended.

“Fundamental” allowances still indexed

“We wanted there to be an anti-inflation shield in the budget for the most deprived people,” he added. As a result, “the most fundamental allowances, such as the RSA, the minimum old age, or the disabled adult allowance, will be “indexed at 100%” to inflation, forecast at 1.8% next year. “For the rest, that’s part of the debate. The government's intention is not necessarily to deindex 100%. There will be a debate in Parliament to know how much to increase,” continued Jean-Pierre Farandou.

He also mentioned an increase in food aid: “that’s an additional 24 million euros, that’s 15% more people that we can help,” the minister underlined. He also reiterated that funding for apprenticeships would be retained.