This week's Budget had a bigger impact on the incomes of poorer households, according to research from the ESRI. 

In research published today, the think tank said most households will pay more in tax next year but will also benefit from higher spending on public services. 

The decision by the Government not to adjust income tax rates or raise welfare payments in Budget 2020 will hit everyone in the pocket next year. 

This is because wages and prices are going up and so if people earn more, they will pay more in tax. Those on welfare will be left behind.  

The ESRI has calculated that the Budget will reduce the incomes of the poorest households by 3% but leave the highest earning households worse off by just 1%. 

But, overall, the ESRI believes the Budget was prudent. The think tank also pointed out that households will benefit from increases in public spending.  

It welcomed the increase in the carbon tax but pointed out that increasing the fuel allowance to mitigate its impact largely benefits pensioners and not the poorest households. 

It also described the Help to Buy scheme, which was extended for two years in the Budget, as a "poorly-targeted" policy which could add to house price inflation. 

We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences