Your CAF aid could disappear because of this phenomenon

This is bad news for some beneficiaries: CAF aid could disappear because of this phenomenon!

CAF aid has already seen the light of day for several years. And the least we can say is that they are essential for millions of people. But before long, a phenomenon could make them disappear.

CAF aid essential for many

Activity bonus, housing assistance, family allowances or even allowances for disabled adults, these aids are necessary to help the French meet their needs every month.

All people who have modest incomes can count on the numerous aids put in place by CAF. On the other hand, there is a phenomenon which could well reduce them, or even delete them in their entirety.

This is the threshold effect. This is a situation where a small increase in your income can result in you losing some or all of your aid. And this, for a very specific reason.

Because of this increase, beneficiaries exceed the ceilings set by CAF. Please note that just one extra euro on your salary can have a significant change in the amount of your aid.

For example, a minimum wage employee who receives a salary increase could lose their activity bonus or even the back-to-school allowance. Thus, he will see his income drop every month.

A terrible phenomenon

As a reminder, beneficiaries of CAF aid who exceed the imposed ceilings by just one euro can lose everything. Some must then choose between a higher salary or assistance from the Family Allowance Fund.

The Directorate of Research, Studies, Evaluation and Statistics (DREES) emphasizes that an increase of 100 euros in income can sometimes cost up to 422 euros in various charges for the employer.

In this case, the employee then sees his aid reduced accordingly. In the end, the real gain remains very low and from time to time even non-existent. One thing is certain, it is a situation that can be terrible for many families.

And things can become even more complicated if households lose all of the aid for a few euros. It must be said that the cost of living continues to increase and many French people need aid from CAF.

This is for example the case of the activity bonus. For example, if you exceed the fixed ceiling, then you will no longer be able to receive assistance. Clearly, an increase in your salary could lead to a net loss of income.

A real problem

This is also why some employees refuse promotions or to work extra hours. And for good reason, they fear losing their aid paid by CAF. A real vicious circle on a daily basis.

In times of rising prices and inflation, aid remains essential to enable consumers to preserve their purchasing power of low-income households. On the other hand, some want to find a solution to this problem.

Many think that the resource ceilings should be reviewed or else introduce more progressiveness into the calculation of aid. This would prevent a single euro of extra income from having terrible financial consequences.

Experts also believe that CAF aid must be adapted according to changes in the cost of living. And this, with the aim of supporting families who have struggling to make ends meet.