The Albanese government will make another pre-election offer in health, promising that if re-elected it will legislate to ensure people pay no more than $25 for a script under the Pharmaceutical Benefits Scheme.

The measure, to be announced by Prime Minister Anthony Albanese on Thursday, would start on January 1 next year.

The government says it represents a cut of more than 20% in the maximum cost of PBS medicines, and would save Australians more than $200 million a year. Four out of five medicines would become cheaper.

The measure, included in next week’s budget, costs the government $689 million over the forward estimates.

Pensioners and concession card holders will continue to have the cost of their PBS medicines frozen at $7.70 until 2030.

This is the latest in a range of initiatives the government has taken in health, including promising billions of dollars to expand bulk billing and adding a number of drugs for women’s health to the PBS. The opposition, which matched the government’s bulk billing policy, will be under pressure to do the same with this latest measure.

Anthony Albanese said: “With cheaper medicines, more free GP visits and a stronger Medicare, we say to Australians, we’ve got your back”.

Health Minister Mark Butler said the last time Australians paid no more than $25 for a PBS medicine was more than 20 years ago.

Butler said when Peter Dutton was health minister in the Abbott government “he tried to make medicines cost more”.

“The contrast in this election is clear: cheaper medicines with a re-elected Albanese government or the frankly terrifying legacy of Peter Dutton, who wants medicines to cost more, not less.”