Overview
- Prime Minister Sanae Takaichi said she will design measures so non‑working pensioners and people with no earned income are not left without support, a pledge made during Diet hearings on July 17.
- The cross‑party Social Security National Council agreed to introduce an income‑linked cash benefit for working low‑income households in fiscal 2029 but explicitly excludes pensioners without earned income and no‑income individuals.
- Negotiations over cutting the consumption tax on food to 1 percent have effectively stalled, and the council plans to record both government and opposition positions in an interim summary rather than force a single compromise.
- The government intends to finalize the economic and fiscal guideline ('骨太方針') at cabinet and to set policy on the tax cut by early August, while also pushing for greater GPIF investment in domestic assets.
- Excluded people could receive compensating support through targeted cash, bundled counseling and job assistance, or expanded services, but any relief will face political trade‑offs and operational hurdles such as point‑of‑sale system changes.