Earlier in the week, the federal government announced a $50 per fortnight increase to the JobSeeker allowance. But Ms Elvey said the increase would not cover the loss of the $150 per fortnight COVID-supplement that is due to end in March.

"Even though there is an increase, it's not enough to cover the costs they have to afford proper food, medication, pay rent and electricity and gas bills," she said.

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"We have had clients trying to get their electricity and gas sorted before (the increase), so they can continue on. They're quite worried.

"Some of those clients we work with are incredible budgeters. To take that COVID-supplement off them again is going to be tough."

Anglicare Victoria CEO Paul McDonald said a four-dollar-a-day rise was not enough to address the kind of poverty which leads to people regularly skipping meals so their kids can eat.

"About one in six children live in poverty in Australia, and this will do absolutely nothing to change that," he said.

"The increased payments during the pandemic gave hope to the unemployed that they might be able to stop queuing up for emergency relief and begin to dig their way out of poverty."

Ms Elvey said the COVID supplement had allowed some families to cover costs they had not been able to afford before. She said the rate families are on with the COVID-supplement should be the minimum base rate.

"A lot of families with that extra money haven't wasted it," she said. "It has given them the ability to do things that needed to be done.

"The ($50) increase they are going to get isn't enough. It's only ($3.57) a day - that's not even a carton of milk and loaf of bread. It needs to be a lot more than that.

"What they are receiving now, even keeping it at that would help."

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