Dáil Éireann Debate, Tuesday - 24 October 2023
63. Deputy Paul Murphy asked the Minister for Social Protection if she agrees with an organisation (details supplied) that Budget 2024 is regressive because temporary changes like one-off social protection payments are more concentrated among those on lower incomes, whereas the permanent changes favour the already better off; and if she will make a statement on the matter. [46428/23]
View answerAs part of Budget 2024, Minister Humphreys and I secured a €2.3 Billion Social Protection package. I am pleased to say that this is, for the second year in a row, the largest in the history of the State.
This package provides a mixture of exceptional cost of living payments delivered quickly, over the coming weeks, along with rate increases effective from January. Each year, the ESRI produces a post-Budget analysis of the main tax and welfare changes in the Budget. The analysis compares the actual welfare and tax changes against a hypothetical neutral budget scenario – i.e. a budget where taxes and rates were adjusted for projected inflation.
The ESRI analysis shows that Budget 2024 rate increases, combined with the cost of living measures, are effective in protecting most households from rising prices through the winter. The analysis also shows that lower income households are better off than if they had just received an inflation indexed increase in basic rates.
The ERSI analysis states that the package of tax cuts, welfare increases, cost of living payments and indirect tax changes introduced under Budget 2024 is progressive with higher gains for low-income households compared to high income households.
The combination of once-off and ongoing measures will support vulnerable groups including pensioners, carers, people with disabilities, lone parents and families. For example, a lone parent with two young children, will be €2,448 better off due to Budget 2024. A pensioner couple will see their income increase by more than €2,514. A person with a disability living alone will be €2,020 better off after Budget 2024.
Budget 2024 is putting money into the pockets of people who most need it. The Budget is independently assessed as being progressive, targeted at lower income households and will protect these households against rising costs.
