The loss of the annual Christmas welfare bonus will mean a 2 per cent cut in the annual income for many older people, the advocacy group Age Action said.
The group said it was relieved the most vulnerable of older people had been spared the worst of the cuts in today’s supplementary budget.
“While the basic social welfare payments to the poorest of older people will not be changed, the loss of the Christmas bonus equates to a 2 per cent cut in their annual income and will come at an expensive time of the year for those older people who depend on it," said Age Action chief executive Robin Webster.
"This is regrettable. However, we are relieved that other payments to the most vulnerable have not been reduced.”
Mr Webster said the increases in both the income levy and the health levy, along with changes to the income levy lower thresholds, meant that more older people with small pensions, or who may still be working for low incomes would pay more. It said the reduction in the rent supplement would also adversely effect those older people living in rented accommodation.