Seniors in NSW will still enjoy cheaper bills and transport despite the federal government’s decision to walk away from hundreds of millions in pensioner concessions, the state’s treasurer says.

Andrew Constance has been vocal in his criticism of the Abbott government’s move to cut $450 million in concession commitments over four years, and has now confirmed his budget will include $107 million for pensioners’ cost-of-living discounts when it comes down later this month.

The concessions include discounted public transport fares, cheaper energy and water bills, council rates and vehicle registration.

“We are not in the business of creating bill shock, where in just a few weeks’ time, people would have been left out of pocket courtesy of Canberra,” Mr Constance said in a statement on Sunday.

“We understand the cost-of-living pressures seniors face and are determined to ensure they are not adversely affected by the federal government’s harsh cuts.”