"There's no way the people we work with can live on the standard JobSeeker," said Mr Dover.

"Now $25 a week extra will make a difference. But I don't think it's gone far enough.

"We need the people that are struggling the most to be supported so they can get ahead. And they're not getting ahead with an extra $3.50 a day."

Prime Minister Scott Morrison, who announced the new base rate of JobSeeker payments on Monday, said Australia no longer needed to "rely on the emergency supports which have sustained us over the past 12 months."

The new rate of $620.80 per fortnight will start on April 1, just after the coronavirus supplement ends in late March, which would have returned JobSeeker to the pre-COVID Newstart Allowance level of about $550 per fortnight.

Managing the Safe Shelter in Shoalhaven, Mr Dover said the majority of his clients received JobSeeker payments and the increase wasn't enough to live on.

"We have a homeless shelter, we organise housing for people. The cheapest house that we can get anyone into, which is a shared accommodation, is $180 a week," he said.

"So you take $180 a week out of their payment and then they've got to eat, it's just not doable.

"And $180 is just bare rent. So then you're paying electricity, you're paying your phone, you're paying internet.

"It's making sure they can't live. I just think it's crazy."

Describing homelessness in the Shoalhaven as an "emergency", Mr Dover said the government should invest in social housing in the area.

"We have 150 people that are looking for accommodation at the moment," said Mr Dover.

"I think especially in the Shoalhaven, the government needs to definitely invest in more social housing.

"Let's say if that happened, that means clients wouldn't have to pay the $180 to $200 a week, it might be $120 a week. That means they would do a little bit better.

"But if the government isn't going to invest in social housing, they need to increase the JobSeeker so people can actually afford to rent a place at market rate, because that's all that's available.

"And if they don't do that, we've got a crisis which is just ongoing and compounding. It's getting worse each year."

People will also be able to work and earn up to $150 per fortnight without affecting their JobSeeker payments.

The Shoalhaven Business Chamber welcomed the permanent increase of the payments.

"I think that the $25 increase is definitely needed. And especially the increase in the income free area," said Shoalhaven Business Chamber president Jemma Tribe.

"So being able to earn that extra $150. a fortnight without your payments being affected will will give an extra boost.

"But I think it does strike the right balance between giving people the support they need, but also providing that extra incentive to get out and find work in a local area, which is available."

Mrs Tribe said there was an increase of people relying on JobSeeker at the beginning of the pandemic, adding that employers in the area were now looking to fill positions.

"When the pandemic first started, I think like everywhere, there was a spike in people joining unemployment queues. And so the support that was provided was certainly necessary," said Mrs Tribe.

"With the relaxing of rules and the fact that international borders are closed, and we've had people coming down to our area, we've been quite busy as a region and industries like hospitality have really benefited from that.

"And some employers tell us that finding people to fill jobs is quite difficult at the moment. So farmers, cafe owners, all sorts of people telling us that they have jobs, and and certainly looking for people to fill them now."