French government considers reforms to school start allowance

The French government is evaluating changes to the school start allowance, a social benefit given to around three million households each summer. This initiative is part of broader efforts to reduce public spending on social security programs.

Allowance costs and proposed savings

The allowance, which costs nearly 2.23 billion euros annually, is being reviewed with the goal of achieving 600 million euros in savings. This would represent a reduction of approximately 27 percent in the current funding.

Reform aims to target aid more effectively

The proposed reforms aim to better target the aid based on the specific needs of children, depending on their age. Constance Bensussan, director general of the National Family Allowance Fund (Cnaf), suggested that the allowance could be adjusted according to the child's age during testimony before the Senate's committee on social affairs.

Discussion of prepaid card and expense limits

Bensussan also discussed the possibility of using a prepaid card to regulate eligible expenses. However, she noted the difficulty in determining appropriate limits and warned about potential issues with intermediaries, similar to those seen with meal voucher systems.

Timing and flexibility of the allowance

The timeline for revising the allowance was addressed, with Bensussan noting that the allowance is paid annually in August, allowing for more flexibility in making changes. Unlike some other benefits, it does not need to be finalized by January.

Concerns over impact on family budgets

Concerns were raised about how a 27 percent reduction would affect the purchasing power of families receiving the allowance. Jocelyne Guidez, rapporteur of the family branch of the Social Security, questioned the sustainability of reducing the funding by 600 million euros. Bensussan acknowledged that the Cnaf could not immediately answer these concerns, as the details of the reform are still being worked out.