Does walking premium business too well? – Point

2.16 million: the number of beneficiaries of the premium business in February 2016, 1.8 million households concerned. Recently introduced, this device help of modest workers, replacing the RSA activity and employment premium, should far exceed government forecasts. Indeed, it was expecting 2 million beneficiary households before the summer.

“This is good news. More business premiums, are more modest workers helped and supported, “said Marisol Touraine, Minister of Social Affairs, the daily Les Echos . According to government figures, 4 million households, or 5.16 million people, are eligible for this allowance. Supposed to “make work pay” and “support the purchasing power,” the prime activity is aimed at workers with modest incomes. For example, for a single person earning less than 1500 euros monthly. She averaged 164 euros per month

Main beneficiaries:. Youth and women

The success of the prime activity is found among young people. While the government expected count less than 200 000 beneficiaries among 18-24 year olds, they are currently 323,000 to benefit. A success due to the will of Francois Hollande to open young people’s rights in this aid package, while the RSA activity was addressed to 25 workers to a minimum. Note that 60% of beneficiaries of the premium business are women, many single mothers

This is part of another teaching of the premium business. 14% of its beneficiaries not touch the RSA activity. According to Marisol Touraine, this is proof that the new device can help individuals who hitherto did not benefit from state aid: “We support and concretely women and men who were not accustomed to be helped and who could feel sometimes forgotten by the system, “she was welcomed. This success is also due to a strong communication on such assistance in the family allowance as well as a simplified application procedure.

budget overrun for?

Less gratifying success of the premium segment is indicative of the resurgence of modest workers in France. Before his death in January 2016, the RSA activity and knew a number of beneficiaries increased 10.7% over the year 2015. Other side of the coin, financing. The government posted a budget of 4 billion euros for the premium of activity in 2016. But its growing success could soon weigh down the bill.