The one-off payment will be made by the French Government to those whose monthly net income is €2,000 (£1700) or less. It comes as energy prices across the EU have soared due to a combination of physical and geopolitical factors and left France in the face of an energy crisis. In what is being called an “inflation allowance”, the money will go towards 38 million French people automatically, even if they do own a car or motorbike.
The payment will be tax-free and France’s Prime Minister Jean Castex has said it will cost the government €3.8billion (£3.2billion).
He said that this would be far less than the cost of cutting fuel duty, which is a tax paid on fuel.
This move also comes as Mr Macron prepares for the French Presidential elections where he will again be running against far-right candidate Marine Le Pen, far-right TV pundit Éric Zemmour, Anne Hidalgo, the Socialist candidate, and Yannick Jadot, who represents the Green movement.
But while Mr Macron’s new policy may be a bid to win him more votes at the upcoming elections in April, the French President’s move has been hailed as a “cheap gimmick.”
Richard D. Wolff, an American economist, posted on Twitter: “Can President Macron fool voters? First he “caps” some rising energy prices, lower-income half of France to get a Christmas 100 Euro check ($116) weeks before next election.
“Cheap gimmicks for systemic crises.”
Back in September, Paris blocked any new increase in regulated natural gas tariffs for households and cut taxes on electricity to ease French discontent as energy prices soared.
The French Government also announced 580 million euros ($672 million) in subsidies to help poor households with their surging energy bills.
Now, in their latest move, the French Government have again made a bid to ease French fury as the crisis deepens.
But critics like Mr Wolff think these measures are not enough to reverse the “systemic crises” Mr Macron faces in the run-up to the elections.
Backlash against the new policy was also quick to come from his Ms Le Pen, his main rival.
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Mr Castex said that the measure was brought in as tax cuts alone had not been enough to immediately alleviate the impacts of price spikes, and noted that they are not targeted enough as those who are most in need.
The French Prime Minister also said that the price cap for gas that he announced last month and was supposed to last until next April, will still be in effect until the end of 2022 if required.