He's also defended the government's decision not to increase the dole for the unemployed, or the single parent allowance.

The federal government will spend $14.2 billion over five years to lift the pensions of more than three million Australians to around $320 a week.

But more than 350,000 single mums and dads on the parenting payment, and the unemployed will miss out.

The government has also decided to phase in an increase in the pension age to 67 by 2023.

"This is a tough decision. It has been part and parcel of two sets of intergenerational reports which were commissioned by the previous treasurer Mr (Peter) Costello which he never had the courage to do anything about,'' Mr Rudd told Sky News.

"Long term, our responsibilities to government is to make the pension sustainable in our public finances.

"We've upped the pension by $32.50 because age pensioners need that support.''

Mr Rudd said the unemployed were getting government support in other areas, including 700,000 more training places.

"It's very, very tough I accept that,'' he said.

"What we are seeking to do with this great challenge of unemployment - which has been brought about by this global recession - is to provide maximum support by way of training places across the economy so people can use a time of temporary unemployment or partial unemployment... to maintain their skills or upgrade their skills for the future.''