France has historically been a paragon of development for the world. Historically, it has prospered economically, culturally, militarily and internationally. Despite all of this, despite the grandeur of the country’s past, France has struggled with poverty. For centuries, the poverty rate diminished, dwindled and sank between the folds of society. However, as of 2025, the issue has reemerged.

The poverty rate in France has climbed to 15.4%, the highest recorded since 1996. Wealth disparity is also widening, with a striking 20% gap between the richest and the most impoverished. This marks a steady rise from 14.4% in 2022. In 2025 alone, around 665,000 people fell into poverty. Poverty has reemerged in this developed nation, lingering like a persistent spectre of domestic hardship.

Context

The median standard of living has stagnated and relative prosperity persists despite inflation, governance and quality of life shifts. Meanwhile, the neediest segment of France has faced a steady decline in living conditions over the past decade, closely linked to cuts in housing benefits. Child poverty has also surged, with one in five children now living in destitution, largely due to housing reforms that disproportionately impacted single-parent households. In 2021, 22.8% of children were at risk of social exclusion, which remains unchanged. Many of these issues are the residual effects of policies enacted during the COVID-19 pandemic.

These issues disproportionately affect migrants and their children compared to native French citizens. This disparity is primarily attributed to limited educational attainment, as many immigrants lack the formal qualifications held by their native counterparts. Additionally, scholars suggest that persistent poverty among immigrants is partly driven by language barriers, particularly the inability to communicate effectively in French. However, this issue extends beyond France’s immigrant population. Anyone below the poverty line faces the harsh reality of soaring inflation outpacing stagnant wages.

In addition, the Russian-Ukrainian War and subsequent European sanctions on Russian oil have driven up energy prices across France, with devastating consequences for many residents. As utility costs climb, more people cannot cover their bills, leading to evictions or entrapment in cycles of debt. Manuel Domergue, Director of Studies at the Foundation for Housing the Disadvantaged, noted: “Electricity and gas cuts for nonpayment are skyrocketing, the number of people who say they are cold in their homes has almost doubled and we are seeing a sharp rise in evictions.”

Solutions

In 2022, France passed a law raising the retirement age from 62 to 64, which worsened elderly poverty. However, numerous French political parties have called for repealing or reversing this law to ease the burden on an already vulnerable population. Alongside proposals to lower the retirement age, many parties also advocate expanding benefits for retirees. These initiatives aim to align pension payments more closely with the absolute poverty threshold.

Furthermore, in November 2024, France’s new minimum wage policy came into effect, raising the Salaire Minimum Interprofessionnel de Croissance (SMIC) by 2%. This adjustment aimed to offset the rising cost of living and rampant inflation, particularly affecting low-income earners. The government emphasized that the increase was part of a broader effort to narrow the income gap and strengthen social protections for vulnerable workers.

To address the surge in energy prices, the Energy Regulatory Commission (CRE) implemented a regulation to reduce the electricity sales tax. This measure is expected to lower monthly utility costs for a broad segment of French households.

Conclusion

France is suffering from increased poverty for several reasons, but all hope is not lost. With a robust social welfare and security foundation, France can alleviate these issues through substantial reform and reinforcement. The battle against poverty is being fought within the halls of the National Assembly and Senate by many political parties. Reaffirming historic social welfare policies will relieve many issues.

– Jackson Hufman

Jackson is based in Glenwood, MD, USA and focuses on Politics for The Borgen Project.

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