Centrelink payments - including the age pension - will increase more than two per cent from March 20.
The increase will be the largest since 2013 and is set to cost the government an additional $2.2 billion.
Under the new arrangement, the rate for a single person receiving an age pension, disability support pension or carer payment will rise more than $20 a fortnight - to around $987.
There are concerns the increase won't help pensioners with the rise in inflation.
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