Medicine prescription charges are being scrapped in a bid to ease pressure on household budgets, and the health system.

At a cost of $619 million over four years, free access to medication is set to benefit an estimated three million Kiwis, including 770,00 over 65.

The $5 dollar charge is a barrier for low-income families accessing medication, with 135,000 adults not collecting their prescription due to cost in the last financial year.

Removing the charge is also hoped to reduce demand on hospitals.