Measures will cut disposable income by 2%

BUDGET measures will cut disposable incomes in average households by 2%, according to a study.

- BY GRAINNE NI AODHA

A Budget package of €9.4 billion was outlined on Tuesday, containing measures such as €10 welfare payment increases, a reduced VAT rate for hospitality and funding for a basic income scheme for artists.

There was no one-off cost-of-living measure outlined alongside the Budget this year.

The Economic and Social Research Institute (ESRI) said the income losses are mostly due to the withdrawal of cost-of-living measures, such as energy credits.

The losses are slightly higher for low-income households, who will see a cut of around 2.5% of household income.