Economy & Politics

The cost of living allowance will double

The government has just decided this measure for all beneficiaries and for the rest of the year.

The government has just decided this measure for all beneficiaries and for the rest of the year.

Low-income households will breathe. At the end of the government council on Wednesday, the family ministry has just announced that the amount of the cost of living allowance (AVC) will be doubled. “The purpose of this change is to provide specific support to low-income people who have been hit particularly hard by the COVID-19 crisis.”

Explicitly, Corinne Cahen (DP) and the other ministers sign a strong gesture for people working in sectors where incomes often correspond to the social minimum wage or are slightly higher than this, and who have been very affected by the Partial unemployment.

The stroke will continue to be granted by the National Solidarity Fund (FNS). To benefit from the cost of living allowance, the overall annual household income cannot exceed a certain threshold set by scales which, themselves, remain unchanged. Namely, for example, 25,744 € of income for a single person.

This increase was part of the recommendations listed by the Chamber of Employees, Tuesday, May 14. It had also been demanded by the main unions fearing the accelerated impoverishment of many households due to the current economic crisis (and to come).

Last year, the National Solidarity Fund will have spent almost 35 million euros to support this device. Measure which will have benefited nearly 20,000 households.

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