More than 1.5 million people on unemployment benefits will get an increase of $50 a fortnight.

This is the first increase to the unemployment benefit in about 25-years.

Job Seeker has gradually been reduced over recent months, after it was doubled at the height of the COVID crisis early last year.

The federal government will now permanently lift the payment to $610 a fortnight from April.

Senior Minister Greg Hunt says it’s a balance between giving people extra assistance, but not acting as a disincentive to find a job.

Opposition leader Anthony Albanese says Labor plans to examine the policy.

As part of the changes, recipients will be able to work a few extra hours without affecting their payments.

(Photo: NurPhoto / Getty Images.)