Federal Budget costings won't cover boost to Newstart

WELFARE groups have hit out at the Federal Government ahead of tomorrow's budget which is unlikely to include a $50-a-week increase to the Newstart allowance.

But the community sector was partly placated by a Gillard government change to allow dole recipients to earn up to $100 a week before their benefits were cut.

Australian Council of Social Service chief Dr Cassandra Goldie welcomed the change, but said it would do nothing for the "four out of five people on Newstart who cannot get into paid work".

She said the increase to allowed earnings was only one part of the package, and it did nothing to help the most disadvantaged groups.

"We must address the inadequate allowance payment rates that have been effectively frozen in time for the past 20 years," she said.

The National Council for Single Mothers and their Children's Terese Edwards said the change also did not reverse the damage done in January when about 80,000 single parent families were forced off payments.