In 2024, public intervention resulted in a 16.1 percentage point decrease in inequality in the distribution of household income. Overall, however, the modifications to the tax and benefit system implemented in 2024 have marginally reduced the fairness of income distribution: inequality, measured by the Gini index, has increased from 30.25% to 30.40%. This was revealed in ISTAT’s report on income redistribution in Italy. According to the report, 11.8 million families' discretionary income has increased by an average of 586 euros per year thanks to tax cuts on personal income (Irpef) and contribution reductions. Conversely, approximately 300,000 families have experienced a loss of approximately 426 euros, which is primarily due to the loss of the entitlement to supplementary treatment of income from employment (the "Irpef Bonus"), as a result of both measures. Working moms have seen a benefit of little over 1,000 euros compared to 2023 as a result of the total exemption from contributions. While the transition from the Citizenship Income, which was already reduced in 2023, to the Inclusion Allowance (ADI) has penalized 850,000 households, resulting in an average annual loss of almost 2,600 euros for the poorest families. In three-quarters of the cases, the Institute explains, these households are deprived of the right to the benefit, while the remaining quarter are disadvantaged by the new calculation method. Only a small group of families (around 100,000) benefited from the ADI transition, gaining about 1,200 euros due to different treatment of family members with disabilities.
|