By Tess Ikonomou in Canberra

Millions of Australians on welfare will have their payments boosted by thousands of dollars each year under indexation changes due to kick in.

More than five million recipients, including pensioners, renters, and job seekers will receive the increases from March 20.

The Labor government has played up the changes saying that after indexation rises over the past three years are added in, recipients are getting thousands extra per year.

From March 20, the maximum single rate of pension for those on the age pension, disability support pension and carer payment will increase by $4.60 to $1149.00 a fortnight.

Single JobSeeker recipients aged 22 and with no children will get a rise of up to $3.10 to $789.90 a fortnight, including the energy supplement payment.

Social Services Minister Amanda Rishworth said the government was helping with cost-of-living pressures.

“We’ve spent the past three years strengthening our social security system, so that it helps Australians at whatever age or stage they’re at in life,” she said.

“Indexation is a critical part of our social security safety net. For pensioners and other payment recipients receiving this financial boost, this will help ease some pressure.”

Labor committed $11.5 billion to the nation’s social security system in the 2023/24 and 2024/25 federal budgets.

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