By EAPN France
The French government is preparing a major reform of its social protection system through the creation of a Unified Social Allowance (ASU), expected to be presented in the Council of Ministers on 15 April 2026.
The reform would merge three key benefits: minimum income (RSA), in-work benefits (Prime d’activité) and housing benefits (APL). By its scope, it represents one of the most significant restructurings of the French social protection system in recent decades.
A reform at constant budget: redistribution among the poorest
The reform is explicitly designed at constant budget. This implies that any gains for some households will be offset by losses for others.
According to the official impact assessment, around 2 million households among the three lowest income deciles could receive lower benefits, with estimated losses between €40 and €100 per month.
This raises serious concerns, as adjustments would partly rely on households already among the most vulnerable.
A framework law with uncertain outcomes
The proposed law mainly sets general principles, while leaving key parameters to future decrees. These include the definition of resources, calculation rules and thresholds.
As a result, the actual redistributive effects of the reform remain largely uncertain. Parliament is therefore expected to adopt a major reform without a fully stabilised understanding of its consequences.
A redefinition of housing support
One of the most significant changes concerns housing benefits. Traditionally aimed at reducing the housing cost burden, they would also be used to ensure financial incentives to work.
This evolution raises concerns about their capacity to continue preventing poverty and housing exclusion, especially as the impact assessment does not provide detailed analysis of housing outcomes.
Strengthening activation logic
The reform introduces a “gain from work” principle, ensuring that working households always have higher resources than inactive ones.
In practice, this may function as a cap on total benefits relative to earned income. However, existing evidence shows that the current system already provides financial incentives to work in most cases.
A debate with strong European relevance
The ASU reform reflects broader European trends:
- simplification and digitalisation of social protection systems,
- increased emphasis on activation policies,
- growing debates on the balance between incentives and adequacy.
At the same time, it highlights the importance of ongoing discussions at EU level, particularly regarding a possible framework on minimum income schemes.
Conclusion
While simplification can be a legitimate objective, it should not lead to reduced adequacy or increased uncertainty for beneficiaries.
The French ASU reform illustrates the need to ensure that structural reforms of social protection systems remain anchored in the objective of effectively reducing poverty and guaranteeing access to rights.
Find out more about ALERTE, EAPN France project on the Allocation de Solidarité Unifiée (ASU)