The Salvation Army has condemned the Federal Government's new job keeper rate saying it barely allows unemployed people in St George and the Shire to live with dignity.
From April 1, jobseekers, single parents and young people on welfare payments receive $25 extra a week.
Prime Minister, Scott Morrison said the new rate was enough to provide the support it needs.
Salvation Army NSW spokesperson Major David Collinson said the increase is about $100 a week too little.
"The Salvation Army's evidence, gathered from working with people reliant on the JobSeeker Payment and informed by economic analysis by third parties, is that an increase of $125 a week is the absolute minimum needed to allow people in St George and the Sutherland Shire to live with frugal dignity," he said.
"A permanent increase of $25 a week does not even begin to address the depths of disadvantage in Australia.
"There needs to be a substantial increase to the base rate of the JobSeeker as well as broader reform to actually support people to move back into work. We had some hope when the Treasurer said that he wanted people to be able to live with dignity, but frankly, $25 a week will not achieve that."
Prime Minister Scott Morrison said he was confident the "social safety net" would support Australians who need it.
"We are now confident that at the end of next month that our social safety net can once again be able to provide the support it needs to Australians," he said.
"But we've also formed the view that that base level of support that exists within our social safety net needs to be adjusted for the long term. That will lead to an increase of $50 per fortnight in that base payment."
Major Collinson said the cost of living in Sydney far outweighed other parts of Australia.
"Even is someone wanted to travel to a job interview on a toll road in Sydney that's expensive, the jobseeker rate makes it hard for those people to seek work," he said.
"Our teams are bracing for an increase in demand as people are forced to make even more sacrifices. This announcement will cause a lot of pain in the Sutherland Shire and St George community."
A permanent increase of $25 a week does not even begin to address the depths of disadvantage in Australia.
- Major David Collinson