Dáil Éireann Debate, Tuesday - 30 May 2017
288. Deputy John Brady asked the Minister for Social Protection the policy scenarios he has examined through the simulating welfare and income tax changes, SWITCH, model in the past three years; and if he will make a statement on the matter. [25580/17]
View answerMy Department undertakes rigorous and extensive ex-ante and ex-post social impact assessments of the main welfare and direct tax budgetary policies. Social impact assessment (SIA) is an evidence-based methodology which estimates the likely distributive effects of policies on household incomes, families, poverty and access to employment. The analysis is generated through the ESRI’s tax/benefit microsimulation model, SWITCH. The model simulates the impact of budgetary changes on a representative sample of households from the CSO Survey on Income and Living Conditions.
The main analysis of potential policy measures is undertaken in the context of the Tax Strategy Group papers. The Social Protection Package papers include social impact assessments of a range of illustrative social welfare budgetary measures, including PRSI measures. These papers are published on the Department of Finance’s website at http://finance.gov.ie/what-we-do/tax-policy/tax-strategy-group.
Aside from this, social impact assessments using SWITCH are used on a regular ongoing basis in relation to potential policy options, packages and to assess the cumulative impact of budgetary policies. For instance, the Department’s Comprehensive Review of Expenditure contained a range of analysis using SWITCH. This is available on the Department of Public Expenditure and Reform’s website at: www.per.gov.ie/wp-content/uploads/Social-Protection-CRE-Submission.pdf.
My Department publishes the social impact assessment of budgetary measures shortly after the Budget is agreed. This is to inform public understanding on the cumulative effect of budgetary welfare and tax policies on income distribution and social equality. Previously published assessments of Budgets 2013 to 2017 are available on the Department’s website at: www.welfare.ie/en/Pages/Examples-.aspx.
