Amid fears the assistance packages are being swallowed up by the pokies, the money pumped into the machines in NSW jumped by 5 per cent since the introduction of the payments.

Figures from the NSW Office of Liquor, Gaming and Racing showed a 5.05 per cent rise, year on year, in the April to June quarter in hotel poker machine profits — from $393 million to $413 million. The figures also showed a 5 per cent rise quarter on quarter.

In western Sydney the figures appeared even higher, with hoteliers contacted by The Daily Telegraph pointing to double digit rises in pokie profits in areas such as Mt Druitt, Cabramatta–Fairfield, Campbelltown and Penrith.

Hotel sources said there were reports gambling profits in Mt Druitt and Cabramatta–Fairfield were up 11 per cent in May and June while in Campbelltown and Penrith they were up 10 per cent.

North of the border the situation was even more dire, with Queensland pokies revenue jumping by 12 per cent in June.

At The Star casino, revenue was up 20 per cent in May and June.

The figures were from the period when householders received the Clean Energy payouts, which began for pensioners in May and were then rolled out to other households. The $820 schoolkids bonus also arrived at the end of June.

Club Liverpool chief executive Ray Stewart, confirmed an increase in poker patronage at his establishment in the past two months: “When you give people free money it’s better given to schools or given in the form of food vouchers or school equipment.

“Just giving people cash, they can do whatever they like with it. They can gamble, they can take drugs, they can excessively partake in alcohol.”

Hoteliers said the economic stimulus package in 2009 produced an 8 per cent rise in pokies turnover in NSW — but in many areas the carbon tax compensation appeared to be higher than that.

The figures appear to support Tony Abbott’s comments in May when he said of the government’s Schoolkids bonus: “You can go and blow it on the pokies.”

Prime Minister Julia Gillard attacked Mr Abbott over his comments at the time: “That’s Mr Abbott’s way of saying he doesn’t trust working families to look after their kids. What an insult.”

Yesterday, Ms Gillard defended the carbon tax handouts, saying the majority of the cash had gone to the good of families.

“I trust the vast majority of families to do what they do every day, which is get up and show love and care and concern for their children and spend their income for the benefit of their kids,” she said.

Small Business Minister Brendan O’Connor went further, claiming only a “negligible amount” from the compensation payments had been spent on the pokies.

He said the extra cash being pumped into the machines was a sign the government’s fiscal policies were working.

“We are seeing an increased level of confidence in the economy,” he said.

“That will then show up in the way in which people spend discretionary income.”

But opposition climate change spokesman Greg Hunt said the money should have been delivered “when the higher electricity bills arrive”. Anti-pokies Senator Nick Xenophon said: “Pokies barons have been overcompensated by the introduction of the carbon tax”.