The Federal Government has welcomed a High Court decision which it hopes will bring an end to the issue of compensation for the Stolen Generations.

Generations who were denied compensation in the Federal Court.

The Commonwealth spent more than $13 million on the case, which took six years.

Indigenous Affairs Minister Philip Ruddock says financial compensation is not the way to help children separated from their families, and $117 million is being provided to help with family reunions and counselling.

The lawyer for the Stolen Generations members, Michael Schaefer, says the Federal Government should not hide behind today's legal decision, because refusing compensation will only perpetuate a denial of Australian history.