The government is now ignoring a report commissioned last year by the government for the government.

Its Economic Inclusion Advisory Committee found the current Jobseeker rate is so "seriously inadequate" that it's acting as a barrier to getting into the workforce.

It recommended a rise of 40 per cent to just under $1000 a fortnight, which is about 90 per cent of the aged pension.

On the current $49.50 a day, people on the Jobseekers payment report having to choose between medicine and electricity.

While Labor Minister Bill Shorten acknowledged times were tough, he said there were "a lot of demands on the budget".

"The government gets it's tough," he said.

"No one thinks it's easy to get by, but we can only do what's affordable."

Independent senator David Pocock, who pushed for the report, had some budget-busting tips for where to find the cash.

"We've got $253 billion worth of stage three tax cuts coming down the line," he said.

"Seems like a pretty good place to start."