Many Newstart recipients are going hungry to survive on $40 a day

A new survey has revealed many Newstart recipients are sacrificing food and utilities to survive on $40 a day.

A man enter a Centrelink branch in Australia Source: AAP

It comes as pressure increases on the government to raise the rate of the unemployment benefit.

Business leaders have also called for an increase to Newstart, saying it would boost the economy.

But Mr Morrison said the coalition's tax cuts for low and middle income earners would do the same job.