Source: The Melbourne Herald Sun [Ben Packham]

KEVIN Rudd has guaranteed carers and pensioners will not be any worse off after the upcoming federal Budget.

The Prime Minister said there was no way vulnerable groups would be left "in the lurch".

He made the pledge after days of speculation that carers and pensioners' allowances would be slashed by his Budget "razor gang".

There were fears carers could lose $1600 and pensioners $500.

Mr Rudd did not rule out a change in how the benefits were paid, but he said pensioners and carers would not lose out.

"When it comes to the bonuses system, carers and pensioners will not be any worse off under the Budget," he said yesterday.

"And beyond that, what we are looking at is ways and means by which we can provide greater financial certainty to carers and pensioners."

Mr Rudd said the challenge was putting the payments on to a secure, predictable basis.

The $394 million carers' payments and $1.3 billion seniors' bonus were created as "one-off" grants, but recipients now depended on the money.

It took Mr Rudd four days to rule out any financial impact on carers, and two days to reassure seniors.

But he warned the budget would still be tough, with the Government determined to find $14 billion in cuts to put a brake on inflation.

"If you've got to make some serious cuts to spending in the administrative areas of departments, it's going to hurt, and that's just the truth of it," Mr Rudd said.

Opposition Leader Brendan Nelson kept the pressure on Mr Rudd to ensure the payments would stay.

"These are the most vulnerable, the sickest and the weakest Australians," Dr Nelson said.

"You don't build a strong economy by attacking the weak and the vulnerable. You build a strong economy so you can look after the weak and the vulnerable.

"If Mr Rudd wants to pick on someone his own size he can start with some of the dodgy state governments that are racking up government debt at an alarming rate."

The carers' payment has been paid to 400,000 Australians for the past four years.

The seniors' payment was introduced last year to help over-65s -- a core Howard government constituency -- meet rising costs.

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