When the 2007 budget was being drawn up, the
government allocated extra funding to top up the amounts originally
earmarked for adapting the oldest and lowest pensions in line with
prosperity. Pensions were upgraded through the granting of a flat-rate
"annual bonus in line with prosperity" in April 2007.
On top of the resources already decided when
implementing the Generation Pact, additional funds are being devoted to
upgrading pensions in 2008. The prosperity bonus is increased with a new
bonus, which a wider category of pensioners receives, and is incorporated
into the monthly pension payment(1)
. Following the increase at the end of 2006, the amount of the minimum
income for elderly people (Income Guarantee for the Elderly or IGE) will
benefit from a further increase of 2% as of July 2008. This increase will
also be applied to minimum pensions for employees and the self-employed.
Finally, from July 2008 onwards, the solidarity contribution levied on
pensions will be gradually reduced. This measure will initially be targeted
at the lowest pensions.
With a view to ensuring that the elderly have a
decent level of income, access to the minimum pension is also being widened
for part-time workers and the minimum entitlement per year worked raised to
the advantage of low-wage workers.
Pensions will be raised further in the future, with
priority always being given to the oldest and lowest pensions. The pension
calculation method will notably be reviewed so as to reform and improve the
system. Moreover, the development of supplementary pension schemes will be
encouraged.
Households with a disabled person will see an
increase in their means, thanks to the total exemption of the partner's
income from the calculation of the integration allowance.
Family purchasing power has also been boosted. The
family allowance at the start of the school year is turned into an age
supplement and thus extended to all children entitled to family allowances
over the period 2008-2009(2)
. Furthermore, the amount of family allowance for the first child of
self-employed workers is being raised again in 2008. The government also
decided in 2007 to grant extra child benefit to low-income single-parent
families. In addition, family allowances will in future benefit from an
adjustment in line with prosperity.
The raising in 2008 of the maximum income ceiling,
below which help in paying heating oil, gas or electricity bills can be
requested, means that more households can at last see their energy bills
lightened.
(1) These adjustments in
line with prosperity are also made in the form of a percentage. An extra
allowance is granted on top of the bonus in situations where this bonus
would be less than a 2% increase in the pension.
(2) The school
subsidy introduced in 2006 and renewed in 2007 was limited to 6-18
year-olds.
