People struggling to pay household bills and small businesses could be in line for more help with their energy bills under an expanded NSW government program.

From next month, the NSW government will increase temporary hardship assistance to $2000 per financial year from $1600, through the Energy Accounts Payment Assistance Scheme.

The program helps households and businesses experiencing hardships – such as loss of income, unexpected medical costs and natural disasters – avoid being disconnected by their energy retailer.

Those eligible can apply for two $500 vouchers for gas bills and two $500 vouchers for electricity bills a year.

NSW Energy Minister Penny Sharpe said the increased payment would make a real difference to those facing unexpected challenges.

“We understand many people are doing it tough as cost of living pressures make it difficult for families to get by and businesses to keep their doors open,” she said on Wednesday.

The assistance will be available from August 1.

Broader energy bill relief will also be available for roughly 1.6 million households and 320,000 small businesses through a joint state and federal government initiative.

While some will automatically receive a rebate on their bills, others are being urged to apply from August.

“I want every household and small business that is eligible, to get the support they are entitled to,” Ms Sharpe said.

– AAP