Welfare groups have warned both sides of politics to stop "putting the boot into the disadvantaged" ahead of next month's federal budget.

Both the Government and Opposition have signalled a tough approach on welfare recipients, with Prime Minister Julia Gillard saying it is unfair on taxpayers to support those on welfare who are capable of work.

Opposition Leader Tony Abbott has spoken of suspending the benefits to people under 30 in areas where there are available jobs.

But a meeting of 12 welfare groups in Canberra has urged the Government to put money into training rather than getting tough with people trying to get paid work.

St Vincent de Paul chief executive Dr Jon Falzon says oeCD figures show Australia has some of the lowest unemployment benefits among the industrialised nations.

He says welfare payments are currently so low, recipients are relying on family, friends and charities to survive.

"This isn't a matter of charity. This is a matter of justice," he said.

"We've heard a lot of populist rhetoric over recent weeks. What we're calling for today is some bold and visionary leadership that actually looks at the reasons behind unemployment.

"Sadly, putting the boot into disadvantaged Australians might be therapeutic for the welfare bashers on both sides of politics but it won't get one person into employment.

"It will not give the dignity that the Prime Minister is fond of spruiking. It will do nothing to alleviate the perpetuation of poverty."

The head of peak welfare body the Australian Council of Social Service (ACOSS), Dr Cassandra Goldie, says the sector is "alarmed" about the tone of the debate.

"We have received many calls from people who are deeply distressed by the rhetoric that seems to be suggesting that if you are living on social security the reason you are there is possibly because you are lazy or you are not trying hard enough," she said.

She says they are worried about the imposition of more activity requirements that will mean people will have extra "hoops to jump through" rather than tailor assistance to increase people's skills.

"We are particularly concerned the Newstart allowance of $34 a day has not had a real increase in 15 years. This payment is languishing well below the poverty line," she said.

"Financial crisis and homelessness are not the foundations for getting back to paid work.

"People looking for paid work need adequate investment in case management, skills and training, a paid work experience program and incentives for employers to take people on."

She says instead of picking on the underprivileged, the Government should find budget savings by plugging tax loopholes for the rich - such as family trusts.

"If we tackled that, plus the tax breaks for golden handshakes which benefit people who are on the highest incomes, we estimate we could find in the order of $2.5 billion to start," she said.

The Federal Government says it will continue to provide support for Australians who are unable to work ahead of the budget.

Minister for Community Services Jenny Macklin says she recognises that some people cannot work due to age or disability, but the Government will support those returning to work.

"We do understand the great value of work and we want to support the participation of as many Australians as possible in employment," she said.