CAF: reduction in financial aid planned for 2024

Recipients CAF (Family Allowance Fund) they must expect disturbing news at the very least. This financial assistance should be reduced from 2024. This measure is part of a specific economic context and has an impact on various benefits paid by CAF, such as housing benefit or even family benefits.

General dose reduction

According to some information, this would be a general decrease affecting all financial assistance allocated by CAF. A reduction in the amounts paid out would mainly affect:

  • Assistance Personalized Housing (APL), which allows people on low incomes to reduce their rent;
  • Family benefits, such as child benefits, which are intended to support households with child(ren);
  • Active solidarity income (RSA), a contribution aimed at supporting the return to work of people in difficulty;

This notice may also affect other services. It is currently difficult to accurately estimate the financial impact this reduction will have on beneficiaries.

Reasons for this reported decline

The first reason given to justify this reduction in allocations is Economic Crisis caused by the COVID-19 pandemic. Indeed, public expenditure has risen significantly since the start of the health crisis and the financial assistance paid out by the CAF is not immune to this increase in costs.

The weight of social measures in times of crisis

In addition, governments have introduced several social measures in recent years that put a strain on public finances. For example, the increase of the activity surcharge or the creation of active solidarity income had a significant impact on the budgets intended for financial assistance. So the planned reduction could be a way to try to reduce this public deficit, largely linked to social spending.

Consequences for the recipient

The announcement of this possible reduction in 2024 caused strong reactions among CAF beneficiaries. The beneficiaries fear a significant deterioration in their standard of living and also fear that this will be only the first phase of a series of successive declines in the coming years.

Growing concerns about the future

This prospect worries those affected, especially families with children or couples without a fixed income, who are largely dependent on financial support from the state. This decline could then increase uncertainty for many households and represent a new source of anxiety for beneficiaries.

Searching for alternative solutions

Faced with this announcement, some beneficiaries are already looking for solutions to compensate for this reduction in financial aid. Pathways considered may include:

  • Use of various forms of credit (personal loan, revolving credit, etc.) to compensate for loss of income;
  • An increase in the number of hours worked, especially for part-time employees;
  • Bringing together other beneficiaries in a similar situation in order to share housing costs or even create a system of mutual assistance with current expenses.

Waiting for official confirmation

To date, no official announcement has been made about the reduction of contributions paid to CAF in 2024. However, this persistent rumor encourages beneficiaries and social partners to mobilize to obtain more information from the relevant authorities. It is therefore still possible that there will be adjustments before the definitive introduction of this measure.

Finallythe announcement of this possible reduction in CAF allocations is bad news for the millions of people affected who could see their financial situation worsen from 2024 onwards. The exact details of this measure and the true extent of these announced reductions remain to be known.

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