ACT leader David Seymour and National leader Christopher Luxon are panning the Government's new cost of living package, with Seymour saying Labour has "announced it's giving up".
Speaking at her party's 2022 conference on Sunday, Prime Minister Jacinda Ardern unveiled a plan to allow wider access to childcare support along with increases to the Working for Families tax credits.
"We're targeting one of the most significant costs for working families by making childcare and before and after school care more affordable to a greater number of low and middle-income families," Ardern said.
"At a time when families are feeling the cost-of-living spike, we're investing in what matters most by making sure childcare is within reach for parents and they have more support to cover other costs."
Ardern also said the inflation adjustment of the family tax credit will provide a little extra relief for the majority of working families.
"Supporting New Zealand families with the cost of living is the top priority for the Government. This kind of targeted support not only reaches those who need it most but it won't have a significant impact on inflation and make the problem worse."
But Seymour said Labour is ignoring the issues New Zealand is actually facing, such as crime, cost of living and a labour shortage.
"There is a cost of living crisis for five million Kiwis. Labour's big answer today is to help 10,000, when the need is felt by millions," the ACT leader said in a statement.
"If Ardern really wanted to help with childcare, she'd let more teachers into the country. Instead, by giving subsidies to a few, they'll push up prices for everyone else.
"Where were her solutions for the wider cost of living crisis? Where were her solutions for rising crime?"
National leader Christopher Luxon also weighed in, calling the Government's package "band-aid economics".
"The core issue is there is no economic plan to address the issue of inflation," Luxon told media on Sunday.
"We support it, it's fine as it is, the real issue is that the Government needs to get to the core of what is driving inflation."
He said New Zealand needs a "proper economic plan", which would tackle blockages in the immigration system and restrain Government spending.
Seymour pointed to his own party's plan, which calls for cuts to tax - to help New Zealand "break out of its post-COVID funk" - and cuts to Government spending.
"ACT's Alternative Budget shows how expenditures could be reduced by $7.2 billion with measures including an end to corporate welfare and returning the number of bureaucrats to the 47,000 Labour inherited," he said.
"ACT's Alternative Budget then adds $1.5 billion of new spending for paying good teachers more, matching Australia with defence at 2 percent of GDP, and sharing GST on construction with local councils to get housing built.
"That allows $3.3 billion of tax cuts, reducing the middle-income tax rate down from 30c to 17.5c in the first year. People earning between $2,000 and $48,000 will get a low and middle-income tax offset of up to $800 that offsets the additional $980 in income tax. They will also receive an additional $253 in carbon tax refunds for every person in their household, leaving them better off overall. ACT's tax swap leaves everybody better off."
