Spending one year with a sick baby in the women's shelter is Barbie Scott's reality but her face lit up when she heard she could be pocketing almost $50 extra per week.

The Government announced in yesterday's Budget it will index benefits to the average wage instead of inflation.

This change brings main benefits like the Jobseekers Benefit, Sole Parent Support, and Supported Living Payments into line with the way Superannuation is calculated.

By April 2023 the benefit increase could see up to $46 per week added to the $80 Scott is left with after paying rent.

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"It's pretty good,