Pensioners to receive '$200m boost' to payments in new policy

The federal government is set to announce a $200 million boost to pension payments.

More than 700,000 part-time pensioners will be about $80 a year better off as a result, News Corp reports.

Minister for Social Services Scott Morrison is expected to confirm the move following a lowering of social security deeming rates, potentially leaving some pensioners worse off.

The Daily Telegraph says the announcement is also part of a softer stance adopted by Prime Minister Tony Abbott in the wake of the coalition's leadership spill motion last week.

The paper says Mr Abbott is expected to make further concessions on various measures in coming weeks.

The pension increase will be additional to annual indexation increases.

It will offset reductions in deeming rates which would have affected pensioners with investments.

Deeming rates reflect the rates of return people receiving income support payments can earn from their investments.