That's the view of NSW Young Labor, which kicked off a week-long campaign at Lake Canobolas on Sunday.

President Paul Mills said it was the first time Young Labor had launched a statewide campaign in Orange, but he said the affects of the welfare payment not increasing for many years were hard-felt in regional areas.

"We are doing it in a regional area because people in the region areas have a lot to lose from the freeze," he said.

Mr Mills said the best way to understand the issues facing people in regional areas was to visit them and talk to people.

He said mental health problems and homelessness could be worsened by young people not being able to access a larger allowance.

"I think the [concern] for us is people's mental health and welfare," he said.

He said it was getting tougher for young people to find work when they were trying to live off the Newstart allowance.

"It is getting harder for people to cope," he said.