The Federal Government has combined a range of stalled and revised welfare measures into a single bill to try to force nearly $4 billion in savings through the Parliament.

Key points: Government agrees to increase FTB-A fortnightly payment by $20 per child

Government agrees to increase FTB-A fortnightly payment by $20 per child Government will dump plans to phase out FTB-B payment when youngest child turns 13

Government will dump plans to phase out FTB-B payment when youngest child turns 13 Labor says 300,000 families will not be eligible for fortnightly increase

After months of negotiations with the Senate crossbench, the Government is extending its Paid Parental Leave (PPL) scheme and, in a bid to secure the passage of its childcare reforms, will soften its proposed cuts to Family Tax Benefits (FTB).

The Government wants to abolish the FTB end-of-year supplements — and use the $4.7 billion in savings to pay for its overhaul of childcare payments — but the move has been blocked by the Senate.

It has now agreed to increase the FTB-A fortnightly payment by $20 per child, to partially compensate for the loss of the annual supplements, and will dump plans to phase out the FTB-B payment when the youngest child turns 13.

Shadow families minister Jenny Macklin said Labor remained opposed to the cuts, saying 300,000 families who are set to lose the supplement would not even be eligible for the fortnightly increase.

"If you're a family on Family Tax Benefit Part A it will mean that you are around $200-a-year-per-child worse off. If you're receiving Family Tax Benefit Part B you'll be around $350 a year worse off as a family. These are real cuts to families," she said.

According to a case study provided by the Government, a single parent on $50,000 a year, with two children under the age of six in day care for three days a week, would be $2,470 better off once the changes to both childcare payments and family tax benefits are taken into account.

In another case study, a two-parent family on $80,000 a year, with two children under the age of six in day care for three days a week would be $2,964 better off under the changes.

That family would lose about $460 in family tax benefit payments, but gain $3,424 in childcare rebates.

Changes part of wider savings plan

Both the childcare changes and revised cuts to family tax benefits have been introduced in a so-called omnibus savings bill, which also includes the abolition of carbon tax compensation payments for new welfare recipients and changes to the Government's PPL scheme.

In a compromise brokered by Social Services Minister Christian Porter, the Government will extend its PPL scheme from 18 to 20 weeks.

However, women will still be prevented from accessing the full benefit if their employer also offers paid leave.

Currently, women earning up to $150,000 a year are entitled to receive 18 weeks' leave at the minimum wage, on top of any employer contributions.

Under the new plan, the Government will "top up" employer schemes to a maximum of 20 weeks.

Mr Porter concedes 68,000 women will have their payments reduced under the plan but said the Government was determined to make the system more sustainable and fairer.

"What we're making sure is the low-income families get more weeks and more financial support," he said.

This is the third attempt by the Coalition to scale back the PPL scheme and the savings have been revised down from $1.2 billion to $490 million.

But Mr Porter said the Government was dealing with the "landscape in the Senate that exists" and was prepared to compromise to secure support for the scheme.

Government expecting to save $3.8b

By combining the measures into a single bill, the Government is not only hoping to expedite its passage through the House of Representatives, but to also put pressure on Labor over the issue of budget repair.

Factoring in the cost of the childcare package and increased FTB payments, the Government is expecting to save about $3.8 billion over four years.

However, the omnibus bill also includes some deeply unpopular measures which have previously been rejected by the Senate, including forcing unemployed people under the age of 25 to wait four weeks before they can receive social security payments and raising the eligibility age for Newstart Allowance to 25.

That means young job seekers will only have access to the less generous Youth Allowance until they turn 25.