Budget 2024: The Impact of All Measures, April 2022 to 2024
Since the first energy credit in April 2022 Government has made a series of policy decisions in response to the cost of living crisis. Here we bring together the impact of all changes since then. These capture: the household energy credits, lump sum increases in fuel allowances and the additional welfare payments announced throughout 2022, including in Budget 2023 (All measures in 2022); all of the 2023 welfare, taxation and energy credit measures implemented prior to the announcement of Budget 2024 (2023 pre-Budget 2024 measures); the welfare and energy credit measures announced in Budget 2024 for implementation before the end of this year (Budget 2024 for 2023); and all of the welfare, taxation and energy credit measures announced for 2024 (Budget 2024 for 2024).
The households we examine are those tracked annually in our income distribution model. They are spread across all areas of society and capture those with a job, families with children, those unemployed and pensioner households. Overall the weekly impact on the households examined is large, ranging in 2024 from €22 to €43 a week for welfare dependent households and from €7 to €50 a week for households with jobs. However, there is a notable difference between the composition and distribution of these changes with permanent changes in 2024 (tax and core benefits) favouring higher income working households. Temporary changes (one-off credits and payments) are more concentrated among on lower incomes.
Table 1: Average Weekly Value (€) of all Cost of Living Measures plus all Tax and Benefit Changes, April 2022 to 2024
|
Welfare Dependent Households |
All measures in 2022 |
2023 pre-Budget 2024 measures |
Budget 2024 for 2023 |
Budget 2024 for 2024 |
% Temporary measures in 2024 |
|
Couple, 2 children (both under 12yrs) |
20.61 |
47.24 |
20.57 |
43.17 |
35% |
|
Couple, 2 children (both over 12yrs) |
20.61 |
47.20 |
20.27 |
42.85 |
35% |
|
Couple pensioner |
28.93 |
38.35 |
17.89 |
38.66 |
41% |
|
Couple, no children |
14.33 |
35.44 |
9.53 |
33.09 |
40% |
|
Lone parent, 1 child (over 12yrs) |
27.30 |
29.51 |
18.17 |
27.25 |
41% |
|
Lone parent, 1 child (under 12yrs) |
27.14 |
29.49 |
18.02 |
27.09 |
41% |
|
Single pensioner |
28.83 |
23.61 |
17.37 |
23.08 |
48% |
|
Single unemployed |
11.67 |
23.61 |
6.88 |
22.21 |
46% |
|
Households with Jobs |
All measures in 2022 |
2023 pre-Budget 2024 measures |
Budget 2024 for 2023 |
Budget 2024 for 2024 |
% Temporary measures in 2024 |
|
Single, job at the minimum wage |
7.67 |
31.46 |
2.88 |
49.87 |
12% |
|
Couple 2 earners at €200,000 |
7.67 |
39.51 |
2.88 |
38.99 |
15% |
|
Single, job at the living wage |
7.67 |
37.82 |
2.88 |
37.71 |
15% |
|
Couple 2 earners at €150,000 |
7.67 |
39.51 |
2.88 |
37.56 |
15% |
|
Couple 2 earners at €100,000 |
7.67 |
39.51 |
2.88 |
35.64 |
16% |
|
Couple 2 earners at €80,000 |
7.67 |
39.51 |
2.88 |
33.81 |
17% |
|
Couple 1 earners at €100,000 |
7.67 |
26.94 |
2.88 |
26.21 |
22% |
|
Couple 1 earner at €60,000 |
7.67 |
26.94 |
2.88 |
25.44 |
23% |
|
Single, job at €100,000 |
7.67 |
23.59 |
2.88 |
22.37 |
26% |
|
Single, job at €120,000 |
7.67 |
23.59 |
2.88 |
22.28 |
26% |
|
Single, job at €60,000 |
7.67 |
23.59 |
2.88 |
21.60 |
27% |
|
Single, job at €40,000 |
7.67 |
23.59 |
2.88 |
19.78 |
29% |
|
Couple 2 earners at €60,000 |
7.67 |
14.20 |
2.88 |
15.86 |
36% |
|
Couple 2 earner & 2 children, at €60,000 |
13.04 |
18.05 |
8.24 |
15.86 |
36% |
|
Single, 1 child, job at €30,000 |
7.67 |
13.25 |
5.56 |
13.12 |
44% |
|
Single, job at €30,000 |
7.67 |
11.32 |
2.88 |
11.21 |
51% |
|
Couple 1 earner at €30,000 |
7.67 |
8.45 |
2.88 |
7.37 |
78% |
|
Couple 1 earner & 2 children, at €30,000 |
13.04 |
12.30 |
8.24 |
7.37 |
78% |
Notes: Table includes all measures since the first energy credit in April 2022 to those announced in Budget 2024 for introduction in 2024. The analysis includes the increase to the minimum wage as a Budget measure. Low Income working households may also receive the Working Family Payment. Rounding may impact totals. Our June 2023 publication, Tracking the Distributive Effects of Budget Policy 2023 Edition, provides a further breakdown of the measures in 2022 (pre and post Budget 2023) and those in 2023 announced as part of Budget 2023 and as part of the further cost of living measures in February 2023. It is available on our website.
Our full response to Budget 2024 is available now: Budget 2024 Analysis and Critique | Social Justice Ireland