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Record poverty rate in 2023, inequalities on the rise: the latest figures from INSEE are “alarming” but far from “surprising”

Record poverty rate in 2023, inequalities on the rise: the latest figures from INSEE are “alarming” but far from “surprising”
A Restos du Cœur food distribution center in Nice, southeastern France, on March 13, 2025.

A Restos du Cœur food distribution center in Nice, southeastern France, on March 13, 2025. SYSPEO/SIPA

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Unprecedented for at least thirty years: the poverty rate broke a record 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 .

This annual study by the National Institute of Statistics and Economic Studies (INSEE) on poverty, published this Monday, July 7, does not include residents of overseas departments , the homeless , and 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. "Le Nouvel Obs" takes stock of the findings of this latest study.

• 650,000 people will fall into poverty in 2023

Between 2022 and 2023, the poverty rate increased by 0.9 percentage points, from 14.4% to 15.4%, INSEE specifies in its annual study. 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.

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

"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 microentrepreneurs whose incomes are low."

• Levels of inequality among the highest in 30 years

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 quickly than inflation, while the standard of living of the most affluent has been dynamic, notably thanks to the good situation on the labor market and the performance of financial products."

• Single-parent families and the unemployed are overrepresented

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.

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"In France, among 18-24 year olds, there are more poor people than in many European countries."

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), due in particular to the increase in the minimum contribution planned as part of the pension reform.

• Associations deplore “political inaction”

Contacted by AFP, the Foundation for Housing the Disadvantaged (formerly the Abbé Pierre Foundation) described the figures as "alarming" but "far from surprising" given the situation on the ground and the end of measures to boost purchasing power.

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

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"We met with Prime Minister François Bayrou last week, and he mentioned a 10-year poverty reduction target. In itself, that's a good thing, but with what means?" 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 voluntary sector, we expect the government to take ambitious measures and raise awareness," she adds. "We hear rumors about the idea of ​​a blank year of non-revaluation of social benefits: this would be unacceptable given the context."

By The New Obs with AFP

Le Nouvel Observateur

Le Nouvel Observateur

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