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While the government announced the reform of the LPAs for January 2019, it will not be effective until April. A way for them to avoid any mess in the organization.
Housing benefits will no longer be calculated in the same way from April 2019. Until then, the PLA were calculated in relation to income earned in during the two previous years. That is, 2018 allowances were valued on the basis of 2016 wages. Beginning next spring, the amount of APLs will be calculated based on current earnings. If it was originally announced for January, this reform will only be installed in the spring to avoid organizational problems. The new reform on the direct levy of income tax also begins in January 2019. It is therefore necessary to facilitate the implementation of these two major changes. " It is necessary that the withholding tax be already installed to have visibility on the wages of January, February " explained the Secretary of State for Territorial Cohesion, Julien Denormandie Les Echos
This change in calculation should allow the government to save around 1 billion euros. And, above all, it will allow students who have had a job only two years before, to see their allowances drop drastically when they are no longer working.
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