Charities are welcoming the Government's mini budget families package aimed at tackling child poverty, The United Nations Children's Fund describing it as a Christmas present for families.
The coalition Government says about 384,000 families will be better off by $75 a week under its families package.
It's estimated 88,000 children's lives will be turned around by the flagship policy which will cost $5.5 billion over the next five years.
Prime Minister Jacinda Ardern says, on the Government's modelling, "it looks like we will reduce child poverty by almost half".
Prudence Stone of UNICEF New Zealand said the organisation was thrilled by the package announced yesterday.
"We are very, very happy here. It's what we've been advocating for. It feels like a Christmas present for every family across New Zealand," she said.
From July, Working for Families tax credits will go up by between $575 and $1400 a year, depending on the age and number of children.
Thirty-nine-thousand more families will be eligible for the credit by 2021.
There is also a $60 a week baby bonus for all newborns.
Treasury has confirmed the Labour-led Government's promises and coalition commitments can be met.
Major Campbell Roberts of the Salvation Army said the $60 grant "is a terrific payment and I think it will make a real difference".
Finance Minister Grant Robertson said it's "the most significant package to lift children out of poverty in recent memory".
To pay for the package, the Government will reverse National's tax cuts, due to kick-in in April.
That will save $8 billion. The families package will cost $5.5 billion, leaving an extra $2.5 billion to spend on other things.
National's finance spokesperson Steven Joyce says the previous government would have lifted more children out of poverty over the same period.
"The previous government's package lifted 50,000 young people out of poverty immediately the package came into force. The Government are comparing that with 88,000. And that seems a lot better until you note the fine print - and they are not talking about till 2021," he said.
National has also criticised a $450 winter energy payment that'll go to all pensioners regardless of their wealth.
ACT leader David Seymour said the Government "is turning into a reverse Robin Hood that taxes everyone and gives a lot of benefits to the rich as well as the poor".
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