shield on rents, no clue… The latest indiscretions

PURCHASING POWER LAW. The presentation of the purchasing power bill is approaching, and some revaluations have already been formalized! RSA, rental prices, index point… We take stock.

[Mis à jour le 27 juin 2022 à 10h14] The purchasing power bill should be announced on July 6th. Already, certain measures have been formalized by the executive in favor of the purchasing power of the French in this period of galloping inflation (5.2% in May over one year). First of all, various social minima should increase by 4% from July 1, 2022, to take inflation into account. A retroactive increase to July 1. This concerns: the active solidarity income (RSA), the solidarity allowance for the elderly (Aspa) and the allowance for disabled adults (AAH) in particular. Such a device should cost the French State around 7 billion euros until the end of 2022. The increase in the index point for civil servants for the first time since 2017, or the extension of the tariff shield on energy will also be part of the first measures of this second Macron five-year term.

A small novelty should also appear in this purchasing power bill. It is a proposal which had, until then, more the favors of Jean-Luc Mélenchon and Nupes. It is clear that Emmanuel Macron is forced to slightly revise his plans after the loss of the absolute majority in the National Assembly following the last legislative elections. The current government now wishes to set up a rent shieldwith a cap on the increase at 3,5% until the second quarter of 2023. So as not to subject low-income households to the rise in the reference rent index.

The rise in consumer prices is expected to continue in the coming months. INSEE predicts an increase between 5% et 5,4% next June, enough to push the government to act, by proposing a salvo of measures to try to support modest households and low wages. In this sense, several proposals already mentioned by the executive for many weeks should indeed come into force in the event of an alliance between Together and another group present in the National Assembly. Here they are :

  • Macron bonus: the Head of State intends to triple the amount of the exceptional purchasing power bonus to reach up to 6,000 euros in certain cases. It concerns employees whose salary does not exceed 3x the minimum wage.
  • RSA: the active solidarity income should be conditional on a minimum of activity on the part of the beneficiaries. The most likely track remains 20 hours of training per month. A way for the executive to promote the return to employment. It will also be revalued by 4% on July 1, 2022 to take into account the galloping inflation of recent months.
  • Thawing of the index point: The index point, used to calculate the gross salary of civil servants (teachers, police officers, etc.) will be upgraded this summer. The increase should be between 1% and 4%. No thaw of the index point has taken place since February 2017, under François Hollande.
  • TV fee: it was a campaign promise the audiovisual fee will be abolished in 2022. Its amount was 138 euros in mainland France and 88 euros in Overseas for each household with a television.
  • Indexation of pensions to inflation: In addition to the introduction of a minimum pension of 1,100 euros, Emmanuel Macron wishes to index retirement pensions to the level of inflation to take into account the sharp rise in prices which should be durable.
  • Fuel bonus: the government could extend the discount of 18 cents on a liter of fuel, and even set up new, more targeted aid for those who have no choice but to use their vehicle to get to their workplace.
  • APL: the APL will increase by 3.5% on July 1, 2022. A way for the government to support the most modest, students and families.
  • Rents: limitation of the increase in rents to 3.5% in 2022.
  • Food voucher: its amount could reach 60 euros and should benefit young people aged 18 to 25, as well as low-income families with children. The measure could concern 8 million people in France with the aim of allowing low wages to consume French, organic, and preferably in short circuits. The food check should not come into force this year, replaced by inflation aid of 150 euros.

As announced by the spokesperson for the current government Gabriel Attalthe various measures forming part of the purchasing power law should be announced “after the legislative elections“. A way of respecting the timetable that Emmanuel Macron had set for himself and his various media outings, regularly announcing the implementation of these measures by the summer. Having not obtained an absolute majority in the Assembly , the Ensemble group will have to compose and forge alliances to try to obtain it and pass its laws. The announcement of the purchasing power bill is scheduled for July 6, not sure that this deadline will be respected in given the fragmentation of the political landscape since the second round of legislative elections.

The amount of the civil service index point has been completely frozen since 2017. Indeed, for more than 5 years, no general increase in the remuneration of public officials has taken place. Only a few categorical increases have been implemented by Emmanuel Macron since his election as President of the Republic in 2017. But as of this year, the civil service index point will experience a further increase! An increase which should be between 1% and 4%. As a reminder, a general increase of 1% would cost the State 2 billion euros per year. The various unions were demanding an increase of between 3% and 20%. The final amount of the increase in the index point will be known on Tuesday, June 28, 2022.

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