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As well as tracking the post-budget income levels of different households (see Budget 2024 Analysis and Critique | Social Justice Ireland, pages 6-8); social justice in ireland It also focuses on assessing how income inequality in Irish society changes after the adoption of budgetary policies.
There are benefits to doing this analysis on a budget-by-budget basis and over multiple years to capture the cumulative effects of budgetary policies. To achieve this, we will track his two indicators of income inequality and plan to monitor and update them annually. These are useful barometers of income inequality in our society.
gap between rich and poor
This gap is the difference between the income of a single person receiving Jobseeker Benefit ('poor') and the disposable income (after income tax and employee social insurance) of a single PAYE worker earning €100,000 ('poor'). Wealth”). Includes temporary living expense support values. An annual income of 100,000 euros was chosen to represent a very high income earner. This equates to the top 6.5% of earners (180,000 people), according to data from the Revenue Commissioners, and more than twice her average income.
As a result of the tax, welfare and one-off temporary measures adopted in the 2024 Budget, the gap between rich and poor will decrease by €10 per week (€542 per year) in 2024. The cumulative gap between rich and poor will continue. In 2024, it will be 960 euros per week (50,115 euros per year). This gap narrowed due to the effects of temporary cost-of-living measures in the 2024 budget. What is noteworthy is the combined effect of emergency energy crisis measures in 2022. In 2024, this gap narrowed for the first time compared to the previous 10 budgets in 2022. However, these temporary measures are not currently scheduled to be repeated in 2024, when the gap is likely to widen again.
Table 1: Gap between rich and poor, middle class and poor after Budget 2024
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rich: Individual income earner of 100,000 euros per year |
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middle: Individual income earner of 40,000 euros per year |
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poor: Individuals receiving job applicant benefits |
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gap between rich and poor |
middle-poor gap |
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annual gap |
50,115 euros |
29,987 euros |
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Gap per week |
960 euros |
575 euros |
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2024 Budget Weekly Gap Changes |
– 10.38 euros |
+ 2.59 euros |
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Changes in the annual gap in the 2024 budget |
– 541.88 euros |
+ 135.37 euros |
Graph 1: Gap between rich and poor, 2014-2024 (EUR/week)
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Note: 2022a is the result of the 2022 budget, 2022b is the result at the end of 2022, 2023a is the result from the 2023 budget, 2023b is the result after including the additional support announced in February 2023, and 2023c is the result at the end of 2023. The 2024 budget includes his measures for 2023, and 2024 is his planned measures for 2024.
Gap between middle class and poor class
The middle-poor gap is the income of a single person receiving Jobseeker Benefit (the 'poor') and the disposable income (after income tax and employee social insurance) of a single PAYE worker earning €40,000. (“moderate”). This median income figure approximates the annual value of a worker who works full time and earns the median hourly wage level.
As a result of all the temporary and permanent measures adopted in the 2024 Budget, the gap between the middle and poor has increased slightly. The cumulative gap between the middle class and the poor next year will be 575 euros per week (almost 30,000 euros per year). Overall, the gap between the middle class and the poor widened by a total of €23 per week (€1,167 per year) between 2014 and 2024.
Graph 2: Gap between middle class and poor, 2014-2024 (EUR/week)
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Note: 2022a is the result of the 2022 budget, 2022b is the result at the end of 2022, 2023a is the result from the 2023 budget, 2023b is the result after including the additional support announced in February 2023, and 2023c is the result at the end of 2023. The 2024 budget includes his measures for 2023, and 2024 is his planned measures for 2024.
