Budget could cut tax reduction for parents of secondary school children in France

An end to a universal tax reduction for parents of secondary school age children could see the tax payable for many increase.

A version of the 2026 finance law (Loi de finances) that makes up a principal part of the overall budget and which was originally drafted under former Prime Minister François Bayrou, has been handed over to his successor Sébastien Lecornu. 

The draft version of the text has been seen by French media outlet Les Echos, and also shows plans to reduce VAT thresholds for some self-employed workers, reigniting the debate on the measures that sparked earlier this year.

Focused on helping save €44 billion in government spending, the draft finance bill sees several measures to reduce expenditure, and was created before Mr Bayrou was ousted from power earlier this month. 

Potential measures include retaining taxes on high-income households (those with a household income or revenu fiscal de référence of at least €250,000), originally instituted by then-Prime Minister Michel Barnier in December 2024. 

Tax reductions for parents to end

However, tax reductions for parents of school children are also under review.

Currently, parents benefit from a tax reduction if their child is enrolled in secondary school, provided they inform tax authorities of this during the annual spring declaration.

This is a flat reduction for all parents that is aimed at assisting with school expenses, regardless of a household’s income level.

The current reductions are €61 per child at collège (ages 11-15), €153 for a child at lycée (16 to 18) and €183 for young people in higher education.

A report from the Cour des comptes in 2024 showed up to 2.45 million parents benefitted from the reduction in 2021, saving these households up to €450 million.

However, the draft bill handed to Mr Lecornu proposed the reduction be removed for collège and lycée aged pupils, only remaining in place for higher education students.

If passed, it would come into force for the 2026 income declarations (based on 2025 income) to be filed next spring.

Is the measure justified? 

A report by the Conseil des prélèvements obligatoires (council for compulsory levies; CPO) that was used by the Cour des Comptes is likely the basis for the planned removal. 

The CPO stated that the measures “constitute a good example of ineffective and inefficient spending that is not subject to any management in terms of targeting or evaluation.” 

Close to two-thirds of beneficiaries of the tax-break for parents of collège pupils in 2021 were among the wealthiest 30% of French households according to the CPO.

This rose to 67% for those in lycées, and up to 75% for those in higher education. 

Note young people from higher-income households are likely to stay in education longer and as just over half of households fall below the threshold to pay income tax they cannot receive the reduction. 

This is opposed to a tax ‘credit’, where if a household does not pay enough tax to benefit (or fully benefit) via a reduction of tax payable, the difference is paid into their bank account.

The CPO argued that the reduction is therefore removed, proposing that the funds are channelled into more grants for parents of lower-income households. 

Although the CPO is not arguing for the removal of the reduction for parents of children in higher education, two MPs in President Emmanuel Macron’s ‘Ensemble’ party issued a report in June 2025 calling for these to be removed.

They argued that the funds should be used for scholarships instead. It is estimated that the measure would affect nearly 1.5 million households and save up to €214 million which could be used to fund scholarships instead. 

Are measures likely to pass? 

The measures are far from guaranteed to come into force next year.

It is unknown how much of the content of this draft bill will be used by the new government of Mr Lecornu when presenting the budget to MPs and senators in autumn.

It is clear that plans by Mr Bayrou were unpopular enough with MPs to see him ousted even before officially presenting the bill, and it is possible that the new government will face backlash if planning to keep significant portions of the draft without rewriting. 

Due to a lack of majority in the Assemblée nationale, the new prime minister will need to court opposition MPs to back his budget.

Pressure from the far-right Rassemblement National, who say tax increases are a ‘red line’ for them in the budget, and the left-wing parties and unions may force Mr Lecornu to abandon the former plans altogether – including this proposal – and draw up a revised budget.