Figures from the office of Bendigo Labor MP Lisa Chesters show 1860 pensioners will be worse off by $124 a fortnight, while a further 720 will lose their pension entirely, costing $187 a fortnight.

The changes stem from a deal between the Coalition and the Greens in June last year, which includes an increase in the taper rate for pensioners resulting in the cut to payments.

Those receiving the maximum rate of pension will not see a change, while others could also get an increase in payment. The assets free area will increase, meaning pensioners can own more assets before the full age pension is affected.

The Department of Human Services was expected to contact by mail anyone whose payment will be reduced as a result of the change.

Ms Chesters said the changes could force some pensioners “into poverty”.

“Pensioners and families already face huge financial pressures this holiday season and the last thing they need is a cut to their pension,” she said.

“What we need is a conversation about what a reasonable retirement income looks like.

“They are taking money off pensioners at Christmas while trying to give a $50 billion handout to big business and the banks.”

For every $1000 in assets above the assets free test, the pension will be reduced by $3 per fortnight. It was previously $1.50 per fortnight.

The Greens made the deal with the Coalition government in exchange for a promise of a review into retirement incomes.

The changes will save the budget $2.4 billion over four years.

When the deal was announced, Treasurer Scott Morrison said 170,000 pensioners will have their payment increase by $30 per fortnight. Labor predicts about 330,000 people will lose all or part of their pension.

Mr Morrison said there would be some benefits for those who lose their part-pension.

“Those who lose access to the part-pension as a result of the increase in the taper rate, to the settings that were in place prior to 2007, will be guaranteed access to the Commonwealth Seniors Health Card,” he said.

For more information about the pension changes, contact the Centrelink Financial Information Services on 132 300.