Households will, on average, be 2 per cent worse off next year as a result of measures in Budget 2026, assuming wages grow as expected, the Economic & Social Research Institute (ESRI) says, with low-income households faring worse.

The think tank, Dominic Coyle reports, said the Government’s decision not to repeat one-off cost-of-living measures was responsible for much of the adverse effect of the budget on household income.

Continuing with the budget fallout, the Coalition’s decision to wait until next July to apply a VAT cut for the hospitality sector was taken, in part, because of the “significant cost” of the policy to the exchequer, the Department of Finance has said, amid sharp criticism from the industry.