Millions of welfare payment recipients set to get a cash boost this week to help ease cost of living pressure

Nearly five million people are set to receive an increase in welfare benefits this week.

Earlier this month, the federal government announced the indexation increase in social benefits, which is scheduled to begin on Tuesday, September 20th.

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This increase in indexation will be the largest in more than 30 years – mainly due to rising inflation.

Retirement, disability, and carer payments will increase to $38.90 every two weeks for singles and $58.80 every two weeks for couples.

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The pension cap will increase to $1026.50 every 14 days for a single person and $773.80 for each member of a retiree couple, or $1547.60 per couple.

JobSeeker, Parenting Payment, ABSTUDY, and Rent Assistance recipients also receive a top-up.

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JobSeeker for singles without children will increase by $25.70 every two weeks to $677.20, while Parental Payment for singles will increase by $35.20 every two weeks to $927.40.

This indexation surge will be the largest in more than 30 years. Recognition: Julian Smith/AAP

The rate for recipients of JobSeeker Payment and Parenting Payment for Partners increases by $23.40 to $616.60 every two weeks.

With inflation expected to hit 7 percent by the end of the year, some seniors’ groups say retirees will still feel the effects of the crisis.

“It’s certainly not enough if you live and rent on your own,” Ian Henschke, chief counsel for National Seniors Australia, told 7NEWS.

He suggested allowing older people to work more – without it affecting their pensions – would solve several problems.

“They made a small adjustment to the work bonus, but you really have to take the handbrake out of the system and say: Come on, go out and work and pay income tax,” said Henschke.

Social Affairs Secretary Amanda Rishworth said the government is aware of how hard it is for pensioners and those on welfare to keep up with the rising cost of living.

“Our guiding principles as a government ensure that no one is left behind and no one is held back. This increase in indexation will help those receiving government payments keep up with the cost of living,” she said.

Home Secretary Clare O’Neil. Recognition: AAP

Speaking to ABC earlier this month, Home Secretary Clare O’Neil said a review of the JobSeeker payment would take place in May next year.

“Australians will be much better off as a result, but there is still work to be done and that is why we are here in Canberra,” she said.

“We’re trying to bring together the political parties and groups of Australians so we can try to advance some of the big issues in our country and the JobSeeker payments issue is certainly one of them.”

With AAP

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