The current social benefits system is the subject of debate on a number of fronts: under-take-up of basic social benefits, the overlapping of multiple schemes, restrictive eligibility criteria for young people, and so on. In response to these challenges, 13 departmental councils (Ardèche, Ariège, Aude, Dordogne, Gers, Gironde, Haute-Garonne, Ille-et-Vilaine, Landes, Lot-et-Garonne, Meurthe-et-Moselle, Nièvre and Seine-Saint-Denis) have launched a pilot project to introduce a basic income that simplifies the existing system and is open to any individual above a certain age, subject to means testing.
A prerequisite for implementing this project is the definition of the reform scenario or scenarios to be trialled. This report contributes to this objective by conducting an ex-ante evaluation of the budgetary and redistributive effects of several reform scenarios defined by the departmental councils involved.
Using the TAXIPP 1.0 Microsimulation model, which draws on both administrative data from tax sources and survey data, this report proposes two approaches to simplifying the existing system: firstly, the replacement of the Active Solidarity Income (RSA) and the activity bonus with a simplified scheme; and secondly, the integration of housing benefits into the new unified scheme. In particular, the report conducts an evaluation of the effects of extending these schemes to people aged 18 to 24, who are currently the most affected by poverty.
