Institutions · Measure 1.19

Measure 1.19 — Removing public-sector benefits in kind without a functional purpose

Benefits in kind and function-related resources do not form a single national budget line. The chapter rebuilds the measure without confusing a policy target with a demonstrated net saving.

One phrase covering incomparable realities

Benefits in kind and function-related resources do not form a single national budget line. Vehicles, accommodation, telephony, meals, drivers, travel or use of public assets span different employers and legal regimes. Some are remuneration elements; others respond to security or service constraints. [1][2][3]

Costing status. The Plan historically associates this measure with 180 million euros per year. The number is retained as an audit target, never as a secured saving.

Define personal benefit before removing it

The reform must first define what it targets: personal benefit unnecessary for carrying out the office, not a justified work resource. For each category, rules should specify awarding authority, cap, disclosure, tax treatment, control and return conditions. [2]

Benefits in kind: four questions before removal
Operational necessity?may need to remain
Compensates a constraint?document the reason
Personal benefit?remove or value transparently
Replacement cost?taxi, cash allowance, contract, reimbursement

Create a common register across public employers

A consolidated register by public employer can classify benefits into four groups: essential security; operational necessity; explicitly accepted statutory compensation; and discretionary benefit to remove or charge. This creates a common basis across public services and operators. [1][2]

€180 million depends on avoidable cost

The €180 million target cannot be certified before this inventory. The tax value of a benefit is not necessarily the administration’s avoidable cost; conversely, a costly resource may be essential to the service. Savings must therefore use avoidable marginal cost net of replacement arrangements. [1][3]

Recurring net saving = genuinely removed costs − recreated costs − transferred charges − recurring residual cost Year-one transition cost is published separately.

Security and service necessity as controlled exceptions

Undifferentiated removal can compromise security or increase costs through expense reimbursement. The opposite risk is labelling every existing benefit a ‘necessity’. National criteria, written justification and sample-based audits are therefore needed. [2][3]

What must be demonstrated before retaining the 180 million euros per year target

Benefits in kind need classification before they can be removed intelligently

A benefit in kind can mean very different things: accommodation required by a post, a vehicle needed for official travel, meals, communications equipment, protection, use of an asset or a benefit with no clear operational purpose. The first step is therefore a common taxonomy across administrations and operators. Civil-service pay rules and DGAFP reporting provide the broader compensation context. [1] [2] A blanket abolition would be too crude both legally and operationally.

Each item should be classified as operational necessity, compensation for a constraint, remuneration, or a benefit lacking sufficient functional justification. The classification determines the response. Necessary accommodation for on-call duties may remain and be valued transparently; a vehicle with no evidenced official use may go; an obsolete service may simply end. The register should publish the rule and aggregate cost by category, with controls on exemptions rather than a public list of individual beneficiaries.

The calculation must watch for substitution. Removing a vehicle can increase taxi or mileage claims; ending accommodation can lead to a cash allowance; eliminating a service can create an external contract. Court of Accounts work on institutional resources illustrates the importance of full-cost reasoning. [3] A saving is only validated after before-and-after spending and new reimbursements have been compared. The measure then becomes a policy of functional sobriety rather than a symbolic campaign against visible benefits.

Separate operational tools from personal benefits

Housing, vehicles, meals and equipment can be personal benefits or resources required to perform a public function. Reform therefore starts with a classification explaining why each category is provided and what personal use is permitted. An on-call vehicle used only for official duties is not equivalent to a freely available car; accommodation required by a security or permanence obligation differs from convenience housing. For each category, the impact file should report the number of awards, valuation method and replacement cost if the benefit is removed. That prevents a uniform policy from generating new reimbursement costs in the name of theoretical savings.

Oversight must also detect relabelling. A withdrawn benefit can reappear as a bonus, expense reimbursement or lease paid by another service. An internal decision register linked to payroll and asset records can compare full cost before and after the change, while public reporting remains aggregate. Net savings are limited to benefits that genuinely disappear without equivalent compensation. Any exception that remains should be linked to a documented operational need and periodically reviewed, making the distinction between public-service necessity and private advantage visible in the audit trail.

Make benefits in kind visible without confusing work tools with private gain

Reform starts with a classification of housing, vehicles, meals, digital equipment, subscriptions, special protection and other benefits. The same asset may be an indispensable work tool in one situation and a private benefit in another. Rules therefore need criteria for professional necessity, private availability and valuation. A vehicle attached to a role with permanent operational constraints is not equivalent to a car available for unrestricted private use; service accommodation is not the same as convenience housing.

Transparency should focus first on rules and aggregate amounts, becoming more detailed where public responsibility or value justifies it. Tax, social-security and budget classifications should be aligned so that the same benefit is not described differently across administrations. The impact assessment should also test substitution effects: removing one benefit may lead to a cash allowance or more purchased services. Net savings must therefore follow total expenditure after reform rather than the disappearance of a visible category alone.

Conclusion for measure 1.19. The historical target of 180 million euros per year remains an objective to audit. The reform should be credited only with the net saving actually observed after transition, transferred expenditure and any recreated costs. The policy choice may be made before every amount is known; the site itself must never present an assumption as executed expenditure.
Open the technical appendix: evidence required before validating the costing
Technical appendix — minimum control grid for measure 1.19
StageExpected evidenceTimingTreatment
Zero baselineExecuted expenditure, headcount, contracts, allowances, property and directly related resourcesBefore legislationPublish
Avoidable cost baseLines that genuinely cease, with date and legal basisImpact assessmentJustify
TransitionMobility, compensation, redistricting, IT, contracts and transfersYear 1Separate from recurring
Transferred costsExpenditure taken over by another administration or tierYears 1–2Deduct
Net resultRecurring saving on a like-for-like basis with confidence levelAfter 12 stable monthsAudit