New Labour policy promises an extra $48 per week for low and middle income families

Labour is promising to dump the National Party's recent tax changes and use the funds to assist struggling lower and middle income families, awarding $60 a week for every child under three.

Andrew Little is promising to scrap National's planned tax cuts, and introduce a winter payment for pensioners and beneficiaries. Source: 1 NEWS

For more on this story, watch 1 NEWS at 6pm. Source: 1 NEWS

In response to the Government's $2 billion families package announced in May, Andrew Little today announced part of Labour's alternative budget which would award middle income families an extra $48 a week.

National has pledged it would deliver changes to the lowest two tax brackets, which would come into play in April next year.

However, Mr Little has branded the changes "tax cuts" that benefit the rich.

"Now is not the time for tax cuts. The top 10 per cent of income earners get $400 million from National's tax cut, which is as much as the bottom 60 per cent receive combined," Mr Little said.

Labour would use the $1.5 billion saved in their alternative budget to award tax credits to 30,000 more families.

Labour's proposed package will cost $890 million in its first year, 2018/19.

Labour's package will boost the Working for Families tax credits to $5878 for the eldest child.

The abatement threshold for Working for Families will also be raised to $42,700, from it's current threshold of $36,350.

Also included in Labour's package was a winter energy payment for pensioners and those on a benefit of $450 a year for singles and $700 for couples.