OPPOSITION Leader Bill Shorten admits Labor's decision to push thousands of single mothers on to the dole was wrong.

Under former prime minister Julia Gillard tens of thousands of single mothers were shifted off parenting payments and onto the Newstart Allowance, leaving many between $60 and $100 a week worse off.

The decision came into effect in January 2013 and was intended to save taxpayers $728 million over four years.

"I think the single mothers, the sole parents decision, was probably too hard,'' Mr Shorten told the ABC today.

Mr Shorten's admission comes after the Abbott government flagged plans to crack down on the increasing numbers of welfare recipients on Newstart and the disability support pension.

He said while Labor's decision may be regretful, it did not foresee what was coming under an Abbott government.

"But if you think it was wrong, don't we agree that two wrongs don't make a right?

"Never in our wildest dreams did Labor think that restricting the rate of pension increases for carers and people on disability pensions was the economic salvation of this nation.''

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Originally published as Labor 'too hard on single mums'