Food allowance: the State offers you a last dose of oxygen before the big crash! Here are all the details…
In this period of galloping inflation, the Prime Minister made two strong announcements. The first concerns an emergency food allowance and the second concerns the food voucher. If the two devices are intended to help the poorest households in terms of food, the first is more focused on quantity while the second will aim to improve quality.
Two-pronged food aid
The government’s food aid package will have two aspects. In this period when the purchasing power of the French is increasingly reduced, this public aid is more than welcome. The emergency food allowance consists of offering the poorest households the possibility of buying more food products.
Emergency food allowance: what we know about the device https://t.co/kogq0CDyLE pic.twitter.com/V0bWRpM0Lk
— The Voice of the North (@lavoixdunord) June 8, 2022
As for the food voucher, it should give them easier access to quality products such as organic or local food. However, these two devices will not arrive at the same time. The first aid to be distributed will be the emergency food allowance. Beneficiaries will therefore have to wait a certain time before receiving the food voucher.
Who will be the beneficiaries?
During his intervention on France Bleu, Prime Minister Elisabeth Borne explained that this aid will target the most modest households. However, she warned that the selection of beneficiaries will be a little more targeted than the inflation bonus already in place, even if this new aid will take over the model.
“In an emergency, with inflation, it will be aid paid directly into the bank account, all at once, taking into account of course the number of children in the family”, specifies the head of government.
When will this aid be paid?
According to information provided by Matignon, beneficiaries will see their emergency food allowance paid in September 2022. However, the government has not specified whether it comes before or after the back-to-school allowance. Knowing that the latter will be paid to three million households.
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How much will this help amount to?
If our colleagues from TF1 provide that the amount of this aid will be between €100 and €150. We have not yet received any details from the government. At the end of the Council of Ministers which was held on Wednesday June 8, 2022, the government spokesperson, Olivia Grégoire, nevertheless spoke on the subject.
From the start of the school year, we will help people on the lowest incomes to cope with rising prices by paying them an emergency food allowance directly into their bank account. pic.twitter.com/CauMnx9fjm
— Elisabeth BORNE (@Elisabeth_Borne) June 8, 2022
“Right now, I don’t have the amount. This amount, as the ministers have said, will take into account the number of people in the household, ”said Olivia Gregoire.
What will be the formalities to benefit from it?
This emergency food allowance will be paid directly into the beneficiaries’ bank accounts. This means that there will probably be no special steps to take to receive it. In this case, it is obvious that there will be no specific control on the use of the amount paid.
“We are working hard on an emergency bill for purchasing power”, declares Élisabeth Borne pic.twitter.com/d8ZuGIjYKk
— BFMTV (@BFMTV) June 8, 2022
Recipients of the emergency food allowance will therefore be able to use it to purchase other products. So far, no obligation to use the money for food has been announced. Even if the government spokesperson assured that the sums which will be paid should “allow the French who have difficulties to continue to buy their food products”“.
The reaction of the European Central Bank to inflation
According to a study conducted by the credit insurer Allianz Trade, the cost of food could increase in 2022. And in France, it could well exceed €200 per person! Faced with galloping inflation, the European Central Bank announced a tightening of its monetary policy.
“Inflation reached 8.1% in May 2022, over one year, within the countries of the euro zone. The ECB’s target was initially set at 2%. The European Central Bank has raised its inflation forecast until 2024: 6.8% in 2022, 3.5% in 2023 and 2.1% in 2024,” said Christine Lagarde, President of the ECB.
Indeed, the monetary institution took the decision to stop net asset purchases. Alongside this measure, the European Central Bank also plans to raise its key rates.