This QEC Special Article was subject to refereeing prior to publication. The authors are solely responsible for the content and the views expressed.
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This Article outlines and assesses changes to the tax and welfare system announced as part of Budget 2022. It first looks at the main taxation measures announced before turning to employment, education and social welfare supports. It then considers the effect of the package of measures as a whole on the incomes of households using representative survey data from the Survey of Incomes and Living Conditions run on SWITCH – the ESRI’s tax and benefit microsimulation model – and ITSim – an indirect tax microsimulation model developed jointly by the ESRI and the Department of Finance. The Article concludes with some brief reflections on inflation forecasts and the policy-making process.