Family allocations (child allowance, child care help, birth allowance, school needs allowance etc) cost the state about 30 billion euros, half of which is paid without reference to family income. The systems have been in place since 1934 and have resisted all major attempts at reform. Now the government is considering if the payments should be either capped or treated as income for tax purposes. In recent years both ruling parties have considered such measures but have always shelved plans, (Lionel Jospin actually did cap the payments, but withdrew the measure after 10 months under severe pressure from interested groups).
Perhaps M Hollande's unpopularity means he has nothing to lose by attempting to reform allowances which apparently benefit the better off families more than the poorest.
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