The French government has decided not to automatically adjust the activity allowance — a financial support given to around 4.5 million people — for inflation in the 2027 budget bill, which will be unveiled on Thursday, October 1st. This was announced by Jean-Pierre Farandou, the Minister of Labor, during an interview on France 2. The government's main goal, he said, is to protect the most vulnerable people from the effects of rising prices.
On the day before the budget was officially presented, Farandou confirmed that the activity allowance would not be fully indexed to inflation in the initial draft of the budget. However, he acknowledged that the document might be changed after discussions in Parliament. The minister emphasized that the government wants to create a "shield against inflation" for the most disadvantaged people.
As part of this effort, some of the most essential benefits — including the RSA (a type of social security payment), the minimum old-age pension, and the adult disability allowance — will be fully indexed to inflation, which is expected to be 1.8% next year. Farandou noted that other benefits may be adjusted by a smaller amount, and the exact figures will be determined through parliamentary debate.
In addition to these changes, the minister mentioned an increase in funding for food aid, which will provide an extra 24 million euros. This additional funding will allow more people — about 15% more than before — to receive assistance. Farandou also reiterated that the government will continue to support apprenticeships, ensuring that funding for these programs remains stable.
French Government to Exclude Activity Allowance from Inflation Indexing in 2027 Budget
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