Some single mothers hit by recent welfare cuts to parenting payments have turned to prostitution and strip clubs in order to keep a roof over their family's head.

The payment cuts came in at the start of 2013 and affect 84,000 single parents, mostly mothers who received parenting payments.

The majority have been shifted onto the Newstart unemployment allowance when their youngest child turns eight.

More than 60,000 single parents now receive between $60 to $100 a week less under entitlement changes.

While the budget will look $728 million better over four years and make the system more sustainable, welfare groups have been concerned families will fall into poverty.