The Coalition government is looking at reducing deeming rates for part-pensioners in an effort to boost welfare payments for those whose private incomes have been hit by record low interest rates.

The Reserve Bank cut the cash by 0.25 percentage points to a record low 1 per cent on Tuesday, the second reduction in a month. Two weeks ago central bank governor Philip Lowe said he was receiving more complaints from savers as a result of the first cut.