Anthony Albanese announces single parenting payment extended to parents with children younger than 14

Speaking in Perth on Monday, the Prime Minister said the single parenting payment, currently only available to parents with children younger than eight, would be extended to those whose youngest child is below the age of 14.

Eligible single parents whose children are older than eight currently need to apply for JobSeeker, meaning they receive less money and are classified as unemployed rather than doing parenting work.

"What that will do is to make sure that women in particular, but also fathers, in situations of raising children by themselves can have that sense of security," Mr Albanese said.

"That children as well can be looked after, that people can be in a situation whereby they more easily move into employment when they're able to as well."

The change will mean single parents who had been taken off the payment can now receive an extra $176.90 per fortnight, with the total package to cost the government $1.9 billion through to the 2026-27 financial year.

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"We think 14 is the right balance, 14 is the period in which a student starts to gain more independence, doesn't need the same level of support at home that a younger child does," the Prime Minister told reporters.

"Eight was far too low. An eight-year-old needs mum or dad or their carer to cook them dinner, to look after them.

A 14-year-old starts to, in today's world, starts to move into that change into adulthood," he said.

The announcement follows a cost-of-living package announced at the weekend which will provide more than 5 million households up to $500 in power bill relief.

The 50-50 Commonwealth-state funded initiative will be calculated based on where Australians live.