Assessing the effects of increases and decreases in social benefits and direct taxes on household living standards and inequalities

We simulate increases and decreases in social benefits and direct taxes to assess their effects on household living standards and inequalities. A 5% increase in the lump sum amount of the RSA would reduce the poverty rate by 0.2 percentage point and the poverty intensity by 0.8 percentage point. A 5% increase in the monthly base for calculating family allowances would increase the average standard of living of family benefit recipients by 0.3%. A 5% increase in the scale of housing allowances would reduce the poverty rate by 0.2 percentage point. Finally, a 5% increase in income tax brackets would exempt one million households from income tax but slightly increase inequalities.