August is here! While this month, much loved by the French, heralds the start of vacation for many, and the return to work for others, it also has a number of new features and changes in store for us. Several important changes are on the agenda. Electricity rates will remain stable, a welcome relief for many households. The back-to-school allowance will be paid in mid-August, enabling families to prepare for the new school year. On the other hand, the interest rate on the Livret d'épargne populaire (LEP) savings account will fall, making this investment less attractive. Let's find out more about these changes.
The back-to-school allowance will be paid from mid-August. This essential aid enables families to meet back-to-school expenses, covering supplies, equipment and clothing. This year, some three million households will receive this allowance on August 20. Revalued, it will amount to €416.40 for children aged 6-10, €439.38 for 11-14 year-olds, and €454.60 for 15-18 year-olds. In Mayotte and La Réunion, this aid will be paid from August 6.
The interest rate on the Livret d'Epargne Populaire (LEP) passbook savings account, used by 11.4 million French people, will fall from 5% to 4% from August 1. The cut comes against a backdrop of falling inflation, which has an impact on interest rates on savings products aimed at low-income households. After an initial cut in January 2024, this new rate further reduces the appeal of this savings account for savers.
August marks the last month to take advantage of Pass Rail, a scheme allowing young people aged 16 to 27 to travel unlimited on the TER and Intercités networks for 49 euros a month. This pass, launched to encourage young people's mobility during the summer, will no longer be valid after August 31. So this is the last opportunity to discover France by train at lower cost.
Contrary to initial forecasts, electricity rates will remain stable in August. The 1% increase on consumers' bills, which had been planned due to the revaluation of the electricity transmission tariff, has been cancelled by the government. This decision brings welcome relief to many households facing high energy costs.
These various measures, whether in the form of direct financial support or cost stabilization, will have a significant impact on French budgets from this August onwards. Whether the news is good or not, we've taken note of all the announcements to make sure you're well prepared.
