'Small income gains' for people in Budget 2027 - ESRI
The ESRI analysis of Ireland's Budget 2027 indicates only small income gains for citizens, noting that support levels barely keep pace with inflation and wage growth. The report also highlights that the new cost-of-disability payment is insufficient to cover the actual extra living costs faced by disabled individuals.
Why it matters
It provides an expert assessment of government fiscal policy and its failure to effectively address child poverty or the financial burdens of disability.
Agriculture & Consumer Affairs Correspondent
Changes to direct taxes, welfare measures and childcare supports in this week's Budget announcement will result in "small income gains" for people, according to an analysis by the Economic and Social Research Institute (ESRI).
The ESRI found that the level of supports is "ahead of forecast price growth of 3% and broadly in line with forecast wage growth of 4.1% for 2027".
The research said the measures result in "small income gains compared to a budget pegged to price growth" and "almost no average changes compared to a budget pegged to wage growth".
It also noted that lower-income households will gain compared to "both price and wage indexed policies", while higher-income households will see much smaller changes in their disposable income or "no change".
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