6 New Tax and Practical Changes You Need to Know About

October is the month when housing assistance benefits are adjusted upward. Renovation assistance will also be increased this year. However, there is bad news regarding reimbursement for dental care.

Increase in Housing Assistance
 

As is the case every year, the Personalized Housing Allowance (APL) is adjusted in October. This year, APL recipients will see their benefits increase by 3.5%.
This year’s calculation is based on the rent reference index (IRL) for the second quarter of 2023. The government’s goal is to restore purchasing power for the French people. The Family Housing Allowance (ALF) and the Social Housing Allowance (ALS) will also be increased by 3.5%.
The Solidarity Rent Reduction (RLS), which is reserved for APL recipients living in public housing, will also be increased. The amounts will range from €45.08 to €54.51 for a single person, €54.51 to €66.05 for a couple, and €60.80 to €74.43 for a household with one dependent.

Increase in the Maximum Amounts for Renovations Funded by Ma Prime Rénov

In January 2023, the cap on the cost of work funded by this grant was raised from 30,000 to 35,000 euros, excluding tax. The government is taking it a step further.
Effective October 1, the funding rate will be raised to 65% of the cost of the work (up from 50%) for very low-income households, and to 50% for low-income households (up from 35%). The maximum amounts are set at 22,750 euros and 17,500 euros, respectively.

Decoupling the Adult Disability Benefit from Spousal Status

This had been a long-standing demand from advocacy groups: as of October 1, the decoupling of the Adult Disability Allowance (AAH) from spousal income will take effect.
In short, only the beneficiary’s income will be taken into account. Previously, the AAH was calculated based on the couple’s combined income. This posed a risk of reduced income and financial dependence for couples receiving this benefit. As a result, 160,000 people are expected to see their benefits increase by an average of 300 euros.

Rise in Gas Prices

Regulated gas sales rates (TRVG) ended on June 30. To track price changes, the Energy Regulatory Commission (CRE) has introduced an indicator: the benchmark price for natural gas sales.
In October, this price will increase. The average price per kWh will rise to €0.11617 (including tax), up from €0.10512 (including tax) in September, for a contract covering cooking and hot water. For a heating contract, it will reach €0.09324 (including tax), up from €0.08218 (including tax) in September.

Better dental care coverage

Dental care may become more expensive starting October 1. Reimbursement for dental care will be capped at 65% or 55% of the standard health insurance rate, down from the current 70%.
In short, the out-of-pocket cost will increase from 30% to 35% or 45% for a scaling, cavity treatment, root canal, or surgical procedures. People covered by supplemental health insurance should not have to pay this additional cost initially.

Decrease in the government's share of funding for the employment development contribution
 

As of July 1, 2022, hiring someone in an area designated as a “zero long-term unemployment zone” made employers eligible for government reimbursement of 102% of the gross hourly minimum wage (SMIC). This subsidy will be reduced to 95% of the gross hourly minimum wage for the period from October 1, 2023, to June 30, 2024.