The Senate has passed a range of savings the Federal Government says are needed to pay for its childcare package.

Key points: Government put forward small savings package separate to original omnibus savings bill

Government put forward small savings package separate to original omnibus savings bill It came after crossbenchers rejected any changes that threatened family welfare

It came after crossbenchers rejected any changes that threatened family welfare Labor is still opposed the inclusion of a two-year freeze on the indexation of family tax benefits

The Upper House sat until just after midnight debating the legislation on Wednesday evening.

The Government had initially wrapped the childcare changes into its so-called omnibus savings bill, which included $4 billion of savings and cuts to family tax benefits and paid parental leave.

The crossbench made it clear it would not support the changes unless they were decoupled from cuts to family welfare.

The Government compromised, putting forward a smaller package of savings.

Labor said it still opposed the inclusion of a two-year freeze on the indexation of family tax benefits, which Labor Senator Doug Cameron said would put Australia on the path to American-style welfare.

"The needy in this country pushed to the side for an American system," he said.

Senator Cameron warned crossbenchers against backing the legislation.

"If you agree to this tonight, it's only the start," he said.

"This is only the first attack, the attacks will continue from this government."

But Finance Minister Mathias Cormann dismissed that, saying the savings were "reasonable and fair".

"No family will actually receive less as a result of the changes before us today," Senator Cormann told the chamber.

Lambie uses own experience to attack cuts

In a fiery debate, crossbench senator Jacqui Lambie lashed out at One Nation for supporting the government's legislation.

"I'll give One Nation some advice," she said.

"You know why Clive Palmer didn't survive and PUP? I'll tell you why they didn't survive.

"Because Clive did dirty deals with the Libs.

He stopped doing what he said he'd do for the battler.

"He was full of it, just like One Nation."

The attack came after Senator Lambie called for the Government to reconsider the welfare savings, speaking of her own struggles as a mother on the disability support pension for seven years.

She told the chamber there were times she couldn't afford to buy her son football shoes that fit properly or pay school fees.

"It is shameful and embarrassing, but we do it not because we want to but because circumstances put us there," she said.

"And for you to take more money off those people, you have no idea how bloody tough it is."

But One Nation leader Pauline Hanson rejected Senator Lambie's criticism.

"One Nation has not done any deals with the government with relation to this bill," she said.

"We have looked at the bill in relation in relation to what is good for the Australian people."