The unemployment benefit hasn't risen beyond inflation since the mid-1990s.

The payment is $555.70 a fortnight for a single person without children, or $40 a day. The fortnightly allowance for a single person with a dependent child or children is $601.10.

Mandy Booker is manager of Wollongong Emergency Family Housing and the Wollongong Homeless Hub.

Read more: Young Illawarra couple talk about the 'ridiculous' experience of being homeless with a young daughter

Ms Booker said a high proportion of their clients were on Newstart payments, with over-50s the main age group that are struggling and falling between the Newstart gap.

She said it was "near impossible" for clients to survive on Newstart, which she said doesn't even cover basic needs in terms of housing and food.

"People are being left with $30 to actually be able to support themselves for looking for work, (and) getting into accommodation," she said.

"If they've got even what is a normal rent in the Illawarra, then they're left with $30 a week to live off, which is not sustainable.

"People are having to make the choice to purchase their medication or buy food for the day.

"It needs to be looked at being raised if we want to make an impact in supporting people getting into long-term housing, or also being able to go into employment."

Earlier this year, Berkeley single mother Brianna Muir told the Mercury she is left with about $160 per week to cover all other life expenses, after her rent is paid.

While grateful for receiving Newstart, the Family Tax Benefit and Rent Assistance, the reality is, the bulk of that is spent on rent.

"They haven't put it up since Kurt Cobain died, and the price of everything has gone up," Ms Muir said.

"Politicians have no idea what it's like."

Former deputy prime minister Barnaby Joyce has said his own struggles to make ends meet on a $200,000-plus parliamentary salary inspired him to break ranks and call for a rise in welfare payments for job-seekers.

Ms Booker welcomed "anybody to come and work in a service like ours and walk in the shoes of our clients on a daily basis".

"There needs to be a bipartisan approach to actually looking at people's welfare payments, and the barriers that is creates from them getting into jobs and long-term housing, and the effects it has on their overall well-being," she said.

Narelle Clay, CEO of Southern Youth and Family Services said it was "impossible to live on that amount of money", especially as some Newstart recipients remained on the benefit for long periods.

Ms Clay said the casualisation of the workforce was a contributing factor to many of these issues.

"The people we see, the young people are already experiencing not being able to get a full-time, permanent, secure job anyway, and are surviving on just casual work or Newstart for quite long periods," she said.

"It's not remotely enough to be able to pay for the rent, and then also cover food, electricity and travel costs to go and look for work.

"It's really awful, and these people are experiencing extreme poverty. It's really quite unacceptable in this country."

The Australian Council of Social Service's 'Raise the Rate' campaign is calling on the federal government to lift the single rate of Newstart, Youth Allowance and other related payments by at least $75 per week, and index allowances to wages.

The government has refused to consider an increase to Newstart beyond twice annual adjustments in line with inflation.

An ACOSS survey of 489 people on Newstart or Youth Allowance found more than four-out-of-five respondents skipped meals to save money, and about 44 per cent went without more than five meals a week.

Labor and the Greens have joined forces to initiate a Senate inquiry into the adequacy of Newstart and other welfare payments, which is due to report back next year.

'Very tough' experiences

Other frontline services in the Illawarra have recounted the budget constraints clients on Newstart face daily.

*Sally is a co-ordinator at Wesley Community Centre in Wollongong.

The centre provides meals, food parcels, care and support for those who are unemployed, hungry, living on the streets, single parents, lonely and struggling, mentally ill or substance dependent.

She said many they encountered who are on Newstart were doing it "very tough".

"We've got a lot of people that come in now in for food, help with electricity being put back on," Sally said.

"They pretty much run out of money, which is why they really come here for food and help.... It's just not enough."

Sally said an increase to Newstart would be beneficial. "Obviously with Centrelink and everything, they need to tighten up their ships because people do use the system," she said.

"But I do see a lot of people who don't abuse the system who do need the help."

Supported Accommodation & Homelessness Services Shoalhaven Illawarra is a specialist homelessness service supporting vulnerable women and families.

Outreach team leader Gianna Baldoni said there were always issues given Newstart recipients' incomes are low, even with Rent Assistance, while living expenses were "quite high".

"You can imagine if you're paying rent of about $205, even $210 a week - which is hard to get these days with affordable rental places - you're not left with too much per week," she said.

The lack of rental properties available in the Illawarra for those on Newstart is also a major issue.

"There are a lot of women on Newstart trying to get into the rental market... There's not only the issue of affordability, but there's the issue of what is available within that price range," she said.

*Name changed by request

Read more: People of the Illawarra: Meet Wollongong Homeless Hub manager Mandy Booker