My Department undertakes social impact assessments using the tax/welfare microsimulation model, SWITCH, developed by the Economic and Social Research Institute. Social impact assessment is an evidence-based methodology which estimates the likely distributive effects of policy proposals on household incomes, families, poverty and access to employment. It is a widely used tool at European level. It builds on poverty impact assessment and is similar in concept to ‘equality budgeting’.
My Department has published an integrated social impact assessment of the main welfare and direct tax measures in annual budgets, since Budget 2013. Its purpose is to inform public understanding on the cumulative effect of budgetary policies on income distribution and social equality.
Since January 2016, my Department has published social impact assessments of Budgets 2018, 2019 and 2020, with the social impact assessment of Budget 2021 due to be published shortly. This will be available online on gov.ie. My Department also contributes social impact assessment material to the Tax Strategy Group, whose deliberations are published by the Department of Finance each year.
I trust this clarifies matters for the Deputy.