The State Government will make up the $73 million shortfall after the Commonwealth ended its share of funding for the $500 million program but has only agreed to meet the difference for one year.

What happens after that is unknown and recipients fear cuts to the concession system are inevitable. The program included concessions on items such as rates and electricity and water bills.

Labor’s Cost of Living spokeswoman Lily D’Ambrosio said even though Premier Denis Napthine committed to finding cash for the program until next year, she questioned what programs the money would be taken from to cover the shortfall.

“Many concession cardholders are people struggling with energy bills and council rate increases. These people are desperately concerned that while the Premier is saying he will keep concessions for 12 months, what programs will suffer in order for that to occur?” Ms ­D’Ambrosio said.

A spokesman for the Premier, who refused to be named, said that the concessions would continue without any cuts to services.

“We are disappointed that the Federal Government has ceased funding its share of this longstanding partnership. The Victorian Government will continue to discuss these matters with the Federal Government,” he said.

La Trobe University student Chris Wheeler, who ­relied on concessions for transport and energy bills, said it would get tough for him if the program was stopped completely.

“I am also on Youth Allowance while I am studying. I would be concerned about how I can pay my bills and pay for transport to get around. It could be really hard hitting. I don’t know where they are going to take that money out of,” Mr Wheeler said.

“People in government should really think twice when they make big changes like this. Hitting the worst off in society or the most vulnerable is not a good way to go about it when making the changes to the budget.”

Victorian Council of Social Service (VCOSS) chief executive officer Emma King said concessions programs needed to be simplified and better promoted, with almost a third of eligible households not claming concessions to which they are entitles.

“People are often not aware of the concessions they are entitled to or how to apply for them,” Ms King said.

Ms King said the Federal Government’s decision to cut money from state-based concessions programs was “just one of the many profoundly unfair measures” in the budget.

“State concessions programs assist hundreds of thousands of Victoria’s most vulnerable people (to) meet some of their cost-of-living expenses,” she said.

“The essential services covered by concessions increasingly demand a greater share of low-income households’ budgets.”

She praised the State Government for stepping in to fund the shortfall but urged the Premier to lobby the Federal Government to reconsider the cuts.

A spokesman for Federal Social Services Minister Kevin Andrews, who ­refused to be named, said the Federal Government would continue to fund Commonwealth concessional benefits, such as the Pharmaceutical Benefits Scheme, some ­Office of Hearing Services benefits and a discounted mail ­redirection through Australia Post.

“Changes ­announced in the budget will mean state and territory governments will fully fund their own concessions in the ­future,” the spokesman said.

PROTECTION FOR CONCESSIONS NEEDED

Lalor pensioner couple Reg and Barbara Breaks are worried about the pensioner cuts made in the federal government. The couple say the cost of living is too high and that it is a ‘battle’. PICTURE: Paul Loughnan Source: News Limited

PENSIONERS Barbara and Reg Breaks know how to budget. 

The Lalor couple say they had been struggling with the cost of living lately but seemed to have managed thanks to saving and cutting down on non-essential items.

Mrs Breaks said the pair would be in some trouble if the State Government could not find the money to pay for the concessions program.

“We are concerned they will cut the concessions to the electricity and gas. It will make the bills higher. The food bill is hard enough as it is,” she said.

“We budgeted all our married lives, we built our home here. We would have to budget harder and tighter.

“They call pensioners whingers but we have worked hard all our lives.

“The Liberal Government would be happy if you died so they don’t have to worry about you. Mr Abbott and Mr Hockey were making it clear that they thought pensioners would be a liability.”

Mrs Breaks said in order to save money,the couple did not go on outings and did not smoke or drink.

“The Federal Government has cut back on the State Government so badly there is a danger the state would have to take money from other programs. We are just living from day to day,” she said.

“The state isn’t a money tree. The state would have to get money from somewhere.”