The federal government’s compensation plans to offset the effects of unemployment reform on local welfare centres (CPAS) will fall far short in Wallonia, according to a study by economist Philippe Defeyt, cited Thursday by L’Echo.
The study focuses on Wallonian CPAS centres, which are expected to bear a significant share of the costs resulting from the exclusion of tens of thousands of people from unemployment benefits.
In 2026, federal compensation will nearly cover the costs, leaving Wallonian CPAS centres to finance a net expense of €1.7 million. However, from 2027, the financial burden could surge dramatically to €51.7 million and almost double by 2029, reaching €100 million.
By 2029, Wallonian CPAS centres are projected to shoulder 60% of the net costs arising from this reform, according to Philippe Defeyt.
To put this into context, approximately 86,000 Wallonian unemployed individuals are expected to lose their benefits between January 2026 and July 2027. Of these, around one-third—or 27,000 people, according to Defeyt’s calculations—are likely to turn to CPAS centres for financial assistance through the “integration income” programme.
