What's Changing in August for Your Money

This August, several new measures will affect the budgets of French households. Here are the upcoming changes, some of which take effect as early as August 1.

Savings: LEP Rate Drops to 3% 

A source of income for low-income French households is becoming less attractive. Starting August 1, the interest rate on the Livret d’Épargne Populaire (LEP) savings account will decrease. Following an initial reduction in February 2024, when the rate dropped from 6% to 5%, it will now be set at 4%. Although this rate is lower than the one in February, it remains higher than the 3% offered by the Livret A and still exceeds the inflation rate. The Banque de France estimates that this new rate “allows households holding a LEP to continue benefiting from a very secure return on their savings.” However, the impact of this decrease on the account’s appeal remains to be seen.

Electricity: No Rate Increase 

Good news for 22 million households and businesses. While electricity prices were set to rise in August, the government ultimately decided not to follow the recommendations of the Energy Regulatory Commission (CRE). “ “The challenge is to limit sudden changes for citizens. Otherwise, we lose clarity and acceptability,” explained the Ministry of the Economy in mid-July, noting that rates are expected to decrease in February 2025. If the initially planned increase had been implemented, consumers would have seen their bills rise by an average of 1%, according to the CRE.

Expiration of the “rail pass” 

Young people ages 16 to 27 have only a few weeks left to take advantage of the “rail pass.” Launched this year, this program offers unlimited travel on TER and Intercités trains for one month, for just 49 euros. Valid from July 1 through August 31, it aims to encourage young people to take the train.

Payment of the Back-to-School Allowance 

A crucial date for families. In August, the back-to-school allowance—a means-tested benefit designed to help parents cover back-to-school expenses—will be distributed in two phases. First, on August 6, in the departments of Mayotte and Réunion. Then, on August 20, in mainland France, French Guiana, Martinique, and Guadeloupe. As a reminder, the income limits that must not be exceeded are 27,141 euros for one dependent child and 33,404 euros for two children.