Competitiveness Β· scenario

Reforming social benefits without discouraging work

Test income limits, prevent benefit cliffs and ensure that working more always increases disposable income.

Reforming social benefits without discouraging work
Reforming social benefits without discouraging work

Core principle: work must always raise disposable income

The reform starts from a simple rule: for comparable households, more earned income should always increase disposable income. French official model-household data already show this in many cases, so reform must identify actual cliffs and excessive stacking rather than rely on anecdotes.

The €1,500 cut-off: two designs to test

A β€” hard cut-off

Non-contributory cash benefits stop immediately above a defined income.

Risk: a severe benefit cliff.

Separate protections

Disability, dependency, child protection and contributory rights should not be placed under a single generic income cut-off without a separate policy decision.

Official sources and reference documents

  1. DREES β€” social benefits and redistribution
  2. DREES β€” EDIFIS model households