MEASURES ANNOUNCED AS part of Budget 2023 will protect “most households from rising prices this winter”, according to new research presented today at the Economic and Social Research Institute (ESRI) post-budget briefing.

The research from the ESRI shows that welfare increases combined with one-off measures are large enough to leave the lowest-income households better-off on average than they would have been had welfare payment rates risen in line with inflation both this year and next.

However,  lower-income households will experience real terms cuts in living standards if there is no repeat of welfare bonuses, lump-sum payments and household energy credits in Budget 2024.

The government also announced a range of interventions in the housing market, including some supply-side measures like a triple rate of Local Property Tax on certain vacant residential dwellings.

It also announced the extension of the Help to Buy scheme for another two years at a cost of €350 million, as well as the introduction of a new levy on certain concrete products to part-fund the (Mica) Defective Concrete Blocks Redress Scheme.

Barra Roantree, a Research Officer at the ESRI, said: “Our research shows the government’s approach to insulating households from the recent rise in energy prices has been effective.

Targeted welfare measures combined with universal household energy credits will do more for most lower income households this winter than had welfare payment rates risen in line with inflation both this year and next.

Karina Doorley, a Senior Research Officer at the ESRI, added: “The one-off measures announced as part of Budget 2023 will substantially cushion real incomes. However, most of the permanent changes to tax and welfare measures benefit those on higher incomes. Policymakers may need to consider benchmarking social welfare payments once the inflation crisis has passed to ensure that they provide adequate income for recipients”

Kieran McQuinn, a Research Professor at the ESRI, said: “By providing support for household incomes and for businesses, the budgetary package should mitigate the impact of impending energy costs on domestic economic activity”