Will the reform of housing assistance really be "no losers"?



Housing under construction (image). – NICOLAS MESSYASZ / SIPA

  • The LPA & # 39; s reform will enter into force in April 2019.
  • The simultaneity of the incomes will be the key to the new calculation method.
  • The government demands a degree of "justice".

Are beneficiaries of rent subsidies delivered?
After the fall of 5 euros in APL in 2017, the government decided to
not to revaluate them in October 2018, which again corresponded to a "loss" of about 5 euros, due to inflation. And by 2019, the budget of the Ministry of Territorial Cohesion will save 1.2 billion euros in savings, mainly as a result of the reform of LPA & # 39; s.

New calculation of the income of the current year

What is it? For the time being, those who receive a rent subsidy in 2018 will receive the support according to their 2016 income, a gap & # 39; two years. In mid-July, the government announced that this delay would be lifted.

From April 2019 PLA will be calculated on the basis of the income of the current year. "We will give everyone what he needs"
said Wednesday at RMC the Secretary of State for cohesion of the territories Julien Denormandie, defending a "degree of justice".

"No more losers"

How does the state save money? The reasoning is simple: the executive power gambles that the population as a whole in 2019 will have a higher income than in 2017 (which would have been the reference year with the old calculation method). "In general, the income of our fellow citizens is increasing, fortunately we are in a country where growth is," said Julien Denormandie on Wednesday.

And the higher the income, the lower the LPA & # 39; s: thanks to this mechanism, the state should save about 1 billion euros next year on the payment of rent subsidies. While Julien Denormandie assured last May that "tomorrow, there will be no losers of the LPA".

No quick solution

This is not entirely correct. Indeed, this change benefits those with high incomes in 2017, but lower in 2019: switching from full-time to half-time, losing a job … Thanks to the new system, they receive a higher remuneration than in the old machine. On the other hand, those who have higher incomes will receive less money in 2017 than in 2017 and will therefore be the "losers" of the reform.

The executive half-heartedly remarks: "If you were unemployed two years ago and have a job today, is not it normal that the person who found a job has less work? APL?" Said Julien Denormandie on Wednesday for Pierre Madec, economist at the OFCE, "the reasoning is consistent, but in fact some will lose their allocations and they will see their efforts. [part des revenus consacrés au logement] increase. "

Moreover, the researcher recalls that the Court had already considered the subject in a report published in 2015. "It had shown that taking into account the current income to calculate PLA would represent an additional cost of 350 million euros." This amount should therefore be deducted from the expected savings, "notes Pierre Madec.

The Wise Men also feared "a deterioration of the situation of the recipients": by having to give up their income every quarter, many could become discouraged and no longer receive help. This pitfall will be a priori avoided by the "automatic transmission of data" to CAF, as emphasized by an article of the Echoes in July.

>> To also read: "Drop" from the APL: the government wants to avoid a new controversy

>> Read also: Back to school: the costs of student life continue to rise, according to Unef


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Will the reform of housing assistance really be "no losers"?



Housing under construction (image). – NICOLAS MESSYASZ / SIPA

  • The LPA & # 39; s reform will enter into force in April 2019.
  • The simultaneity of the incomes will be the key to the new calculation method.
  • The government demands a degree of "justice".

Are beneficiaries of rent subsidies delivered?
After the fall of 5 euros in APL in 2017, the government decided to
not to revaluate them in October 2018, which again corresponded to a "loss" of about 5 euros, due to inflation. And by 2019, the budget of the Ministry of Territorial Cohesion will save 1.2 billion euros in savings, mainly as a result of the reform of LPA & # 39; s.

New calculation of the income of the current year

What is it? For the time being, those who receive a rent subsidy in 2018 will receive the support according to their 2016 income, a gap & # 39; two years. In mid-July, the government announced that this delay would be lifted.

From April 2019 PLA will be calculated on the basis of the income of the current year. "We will give everyone what he needs"
said Wednesday at RMC the Secretary of State for cohesion of the territories Julien Denormandie, defending a "degree of justice".

"No more losers"

How does the state save money? The reasoning is simple: the executive power gambles that the population as a whole in 2019 will have a higher income than in 2017 (which would have been the reference year with the old calculation method). "In general, the income of our fellow citizens is increasing, fortunately we are in a country where growth is," said Julien Denormandie on Wednesday.

And the higher the income, the lower the LPA & # 39; s: thanks to this mechanism, the state should save about 1 billion euros next year on the payment of rent subsidies. While Julien Denormandie assured last May that "tomorrow, there will be no losers of the LPA".

No quick solution

This is not entirely correct. Indeed, this change benefits those with high incomes in 2017, but lower in 2019: switching from full-time to half-time, losing a job … Thanks to the new system, they receive a higher remuneration than in the old machine. On the other hand, those who have higher incomes will receive less money in 2017 than in 2017 and will therefore be the "losers" of the reform.

The executive half-heartedly remarks: "If you were unemployed two years ago and have a job today, is not it normal that the person who found a job has less work? APL?" Said Julien Denormandie on Wednesday for Pierre Madec, economist at the OFCE, "the reasoning is consistent, but in fact some will lose their allocations and they will see their efforts. [part des revenus consacrés au logement] increase. "

Moreover, the researcher recalls that the Court had already considered the subject in a report published in 2015. "It had shown that taking into account the current income to calculate PLA would represent an additional cost of 350 million euros." This amount should therefore be deducted from the expected savings, "notes Pierre Madec.

The Wise Men also feared "a deterioration of the situation of the recipients": by having to give up their income every quarter, many could become discouraged and no longer receive help. This pitfall will be a priori avoided by the "automatic transmission of data" to CAF, as emphasized by an article of the Echoes in July.

>> To also read: "Drop" from the APL: the government wants to avoid a new controversy

>> Read also: Back to school: the costs of student life continue to rise, according to Unef


Source link

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