The Labor caucus has endorsed a new policy on Newstart that calls for an increase in unemployment benefits and an immediate inquiry to consider the new rate, amid growing pressure within the government for a funding boost.

Opposition Leader Anthony Albanese presided over a formal decision by Labor MPs on Tuesday to set the new position, in the first move of its kind since the May 18 election.

Labor leader Anthony Albanese has endorsed a move to examine increasing unemployment benefits. Credit:Alex Ellinghausen

But the resolution stops short of backing a Newstart increase that could cost as much as $12 billion over the next four years.

While the caucus did not decide the size of the funding increase, it endorsed a five-step policy that means Labor will go to the next election with a promise to lift the payment, currently set at $555.70 a fortnight for a single person without children.