Millions of welfare payment recipients set to get a cash boost this week to help ease cost of living pressure

Almost five million people are set to receive a boost to welfare payments this week.

Earlier this month, the federal government announced the indexation increase to welfare payments, set to begin on Tuesday September 20.

However, with inflation set to reach seven per cent by the end of the year, some seniors groups say pensioners are still going to feel the pinch.

“It’s certainly not adequate enough if you live alone and you rent,” National Seniors Australia chief advocate Ian Henschke told 7NEWS.

He suggested allowing the elderly to work more – without it affecting their pension – would solve several problems.

“They’ve made a small adjustment to the work bonus, but you really have to take the hand break off the system and say go for it, go out and work and pay income tax,” Henschke said.