Budget will widen gap between better off, those on low incomes – survey
A new analysis of Budget 2024 has warned that it will widen further the gap between the better off and those on the lowest welfare and work incomes.
The study by Social Justice Ireland found that the temporary measures contained in the Budget are more concentrated among welfare dependent households and those at work but on low incomes.
However, the temporary payments will not carry over to future years income and the relative standing of those households is likely to deteriorate in the near term, according to the research.
“Income gains received by higher income working households are much more associated with permanent measures such as income taxation reductions,” said Michelle Murphy, Research and Policy Analyst, Social Justice Ireland.
“We have consistently pointed out that once the temporary measures disappear, the income effect associated with these permanent measures will remain and notably widen income divisions in Irish society,” Ms Murphy said.
The study, ‘Tracking Distributive Effects of Budget Policy’, considered the distributive impact of the Budget taking account of the differences between temporary and permanent measures, and the long-term impacts these measures will have on household incomes.
The research notes that since early 2022, the Government has announced a series of taxation, welfare and temporary welfare and electricity credit measures intended to assist all households with cost-of-living pressures.
“Since April 2022, much of the income support received by lower income households has been in the form of temporary measures while most of the support received by higher income households has been delivered via permanent measures,” said Social Justice Ireland CEO John McGeady.
Article Source – Budget will widen gap between better off, those on low incomes – survey – RTE
