Lack of cost-of-living supports negated Budget's welfare rises for lower-income households

The Economic and Social Research Institute (ESRI) concluded that households have seen a slight reduction in disposable income policy changes since 2020 on average. File photo

Middle- and high-income households were “negatively affected” by measures taken by the Government in the Budget, while benefits to lower-income households from welfare rises were offset by a lack of cost-of-living supports, new research has found.

In a supplementary paper to its quarterly economic commentary on the impact of tax and welfare policies in Budget 2026, the Economic and Social Research Institute (ESRI) concluded that households have seen a slight reduction in disposable income policy changes since 2020 on average.