Federal budget: $125 power bill gift for vulnerable Aussies

Households struggling to cope with soaring power bills will get a boost of up to $125 in this week’s budget. The one-off Energy Assistance Payment will give 3.9 million battlers payments of $75 for singles and $125 for couples.

• ‘Unfair’ concert ticket charges Aussies now pay
• How to avoid extra cinema ticket charges

More than 1.2 million people in NSW will get cash handouts in Tuesday’s Budget to help struggling households cover the cost of soaring power bills.

A one-off Energy Assistance Payment of $75 for singles and $125 for couples will be deposited into bank accounts of veterans, carers, single parents, aged pensioners and people receiving the disability support pension before July.

Across the country, about 3.9 million people will receive the cash boost, including 2.4 million pensioners, 241,992 single parents and 225,209 veterans. An extra 41,000 welfare recipients in Canberra will also benefit.

Struggling households will bet a cash handout of up to $125 to help with energy bills.

The handout was first put to Cabinet in August under former prime minister Malcolm Turnbull as a way of easing cost-of-living pressures on vulnerable people who might miss out on income tax cuts.

MORE NEWS:

BAN ON PAPER BILL CHARGES REVEALED

INXS FILES: ROCK STAR’S DEATH SECRETS

Under Mr Turnbull’s proposal, which was rejected by Cabinet, pensioners would have received the one-off payment, alongside new powers for the competition watchdog to cap default power prices.

Several ministers confirmed the government had also considered pushing energy giants to match the handout and had begun consultations.

It is understood that, as treasurer, Prime Minister Scott Morrison voted against the proposal, preferring to wait until closer to the election.

Prime Minister Scott Morrison’s government will hand down the federal budget next week. Picture: AAP/Paul Braven

“There was so much noise about leadership, everyone thought it would be lost,” a Cabinet minister said.

It is estimated about a quarter of all voting adults will receive the payment, which will cost $285 million.

Treasurer Josh Frydenberg said the “hip-pocket boost” would help cover the next energy bill and ease the cost-of-living pressures.

“It will particularly support older people living in NSW, with the payments to be provided to more than 760,000 people on the age pension,” Mr Frydenberg said.

“We understand cost-of-living pressures are a very real challenge for many across NSW.

“This is why we have worked hard to deliver a strong economy and a balanced budget so we can deliver this assistance.”

As the Coalition looks to shore up support from older voters, government sources confirmed the Budget would also included thousands of new in-home care packages to keep elderly citizens in their homes for longer.

The handout comes a year after the Morrison government banked savings in its last Budget by axing the energy supplement, worth up to $366 a year.