The draft document envisages a one-off payment of 175 euros for a two-person household, with an additional 35 euros for each additional household member. One-person households are eligible for 135 euros, the document showed.

The payments are aimed at about 710,000 households that received Germany's support allowance for low-wage households between October 2021 and the end of March 2022, who will be hit particularly hard by rising bills resulting from record European gas prices in recent months.

Policymakers have said efforts to soften the blow for consumers were being intensified.

($1 = 0.8837 euros)

(Reporting by Holger Hansen; Writing by Christoph Steitz; Editing by David Goodman)