Poverty rate reaches record high in France

Unprecedented in at least thirty years. The poverty rate hit a record high in 2023 in metropolitan France, where inequalities are widening, according to the INSEE . These figures are far from "surprising" for the associations, which are urging the State to take action.

Between 2022 and 2023, the poverty rate increased by 0.9 percentage points, from 14.4% to 15.4%, according to the National Institute of Statistics and Economic Studies in its annual study published Monday. This is the highest rate since the launch of the INSEE indicator in 1996.

In concrete terms, 9.8 million people were in a situation of monetary poverty in 2023, meaning they had monthly incomes below the poverty line, set at 60% of the median income, or €1,288 for a single person. In one year, 650,000 people fell into poverty.

"This is a level unmatched for nearly 30 years," notes Michel Duée, head of the Household Resources and Living Conditions Department at INSEE. "If we want to go back even further, we have to go back to the early 1970s to find roughly comparable poverty levels."

This increase is explained by the cessation of exceptional aid, in particular the inflation allowance and the exceptional back-to-school bonus, which had been put in place in 2022 "to support purchasing power," he adds. "The other element of explanation is the increase, among the self-employed, in the share of micro-entrepreneurs whose incomes are low."

Inequalities in living standards also increased "sharply" in 2023, a consequence of the decline in the standard of living of the poorest people alongside the rise in that of the most well-off.

"Inequality is reaching some of the highest levels in 30 years," notes Michel Duée. The standard of living of the poorest has increased less rapidly than inflation, while the standard of living of the wealthiest has been dynamic, "particularly thanks to the good situation on the labor market and the performance of financial products."

The profile of poor people remains broadly unchanged, with a strong representation of single-parent families - whose poverty rate increased by 2.9 points - and unemployed people, up by 0.8 points.

Another lesson from the INSEE study is a less marked increase in poverty among retirees (11.1%, +0.3 points compared to +0.9 points for the population as a whole), notably due to the increase in the minimum contribution planned as part of the pension reform .

Contacted, the Foundation for Housing the Disadvantaged (formerly the Abbé Pierre Foundation) mentioned "alarming" figures, but far from being "surprising" given the situation on the ground and the end of measures to promote purchasing power.

"Electricity and gas cutoffs due to non-payment are exploding, the number of people reporting cold at home has almost doubled, and we're seeing a sharp rise in rental evictions," emphasizes Manuel Domergue, the Foundation's director of studies. "We're seeing a very worrying trend in political action, or rather, political inaction," he adds. "The time for one-off measures is over; we need structural measures."

"We met with Prime Minister François Bayrou last week, and he mentioned a 10-year poverty reduction target. That's a good thing in itself, but with what resources?" asks Delphine Rouilleault, president of the Alerte collective, which brings together 37 anti-poverty associations.

"Behind the words of humanity and the display of support for the non-profit sector, we expect the government to take ambitious measures and raise awareness," she adds. "We're hearing rumors about the idea of ​​a blank year without increasing social benefits: that would be unacceptable given the current context."

The INSEE's annual poverty study does not include residents of overseas departments, the homeless, or people living in institutions. The last survey conducted on the entire French population estimated the number of people living in poverty at 11.2 million in 2021.