Social Security Budget: Pension Freeze Above €1,265 Fuels Tensions in the National Assembly Even Before Committee Review

A committee review under strain

According to BFM Business, lawmakers open discussion of the Social Security budget bill in committee this Monday, October 12, 2026. The outlet sees the start of a high-stakes political bargaining process, with the government aiming to halve the Social Security deficit. That deficit stands at €21.8 billion in 2026, according to the same source.

Political groups have filed more than 1,600 amendments for this first stage. BFM Business says debates are expected to run until midnight on Friday. Parliament has until the end of November to decide; otherwise, the government could potentially resort to an ordinance, the outlet notes.

The main measures in the bill

According to BFM Business, the government plans to exclude pensions above €1,265 from any increase next year, a move that would save €4.1 billion. For higher pensions, the bill opens the door to sub-indexation by regulatory decree.

The bill also freezes certain social benefits, including family allowances and the back-to-school allowance, for a gain of €1.1 billion. It further reduces employer social contribution exemptions, a measure expected to bring in an additional €3.7 billion in revenue.

Regarding criticism from the National Rally, BFM Business also points to a transfer of Health Insurance reimbursements to supplementary health insurers, amounting to €700 million, particularly for spa treatments and hospital fees, as well as a €300 million tax on sugary products. A one-year waiting period is also planned for certain benefits paid to foreign nationals.

The left threatens censure

When ministers presented the bill last week, according to BFM Business, no lawmaker explicitly challenged the goal of reducing the deficit. The disagreements concern the method, which the outlet considers deeply rooted.

Still according to BFM Business, the entire left promises to censure the government if the text remains unchanged, arguing that the effort falls too heavily on the most modest households while businesses and the wealthiest are barely asked to contribute. This includes the Socialist Party, most of whose elected officials had approved the previous budget in exchange for the suspension of the pension reform.

Socialist lawmaker Sandrine Runel criticized the government for neglecting the rise in Social Security revenue. She advocates a progressive generalized social contribution, which she considers essential to restoring public accounts.

The National Rally and the executive's allies

According to BFM Business, the National Rally has not formally raised the prospect of censure but is clearly hostile to the bill. RN lawmaker Joëlle Mélin accuses it of once again placing the burden on the French people. The party opposes the transfers to supplementary insurers and the tax on sugary products, which would, according to Ms. Mélin, make treats more expensive. By contrast, it welcomes the waiting period for foreign nationals, in line with its platform.

The executive's allies remain cautious for now. During the hearing with ministers, only the EPR group supported the de-indexation of pensions. Its lawmaker Annie Vidal stressed that retirees would not be the only ones affected: employees, supplementary insurers, pharmaceutical manufacturers and recipients of the highest termination benefits would be hit as well.

The Republicans (LR) and Horizons are calling for genuine cuts in public spending. LR lawmaker Justine Gruet promises to find an additional €20 billion, according to BFM Business.

The timetable

After this committee stage, which BFM Business presents as a warm-up, floor debates will begin on Tuesday, October 20, on the initial version of the bill. A vote is scheduled for October 27.

Analysis

The facts reported by BFM Business suggest that the government does not, at this stage, have clear support: the left is announcing censure, the RN remains critical despite a measure that suits it, and only one allied group backs the de-indexation. Agreement on the deficit-reduction goal contrasts with disagreements over the means, leaving the outcome of the October 27 vote uncertain.