Govt to restrict Centrepay lease payments

The federal government will restrict the options available to welfare recipients leasing goods through Centrepay.

The program, used by over 600,000 people on welfare, allows them to rent items like smart phones and sound systems, with repayments taken directly from their Centrelink accounts.

Minister for Human Services Marise Payne says leases that run for an indefinite period, or for four months or less, will be excluded from the Centrepay program.

"From our perspective it's about consumer protection, protecting our most vulnerable consumers," Ms Payne told reporters in Collingwood on Friday.

"It has had players (in the past)... who have not had the best interests of customers at heart by any stretch of the imagination."

Leases would also be restricted to those regulated by the National Consumer Credit Protection Act.

The government will also increase the number of low-cost loans supported through Centrepay.