Labour leader Chris Hipkins says the National Party is "cutting benefits" and that will lead to more people and children living in poverty.
The comments come after National released its fiscal plan, saying it will lower taxes, reduce net debt and bring discipline to government spending.
Labour claims National’s proposed changes to welfare will see main benefits drop an average $2621 a year by 2028 compared to what it is proposing, effectively pushing thousands more families and children into poverty.
Speaking to media at a stand up in Lower Hutt today, Hipkins said that National, by cutting benefits by indexing them inflation instead of average wage growth, would push more children into poverty.
"Their priorities have been really clear. They want to sell New Zealand homes to overseas investors. They want to put thousands of people out of work but they won't say who's going to lose their jobs or when. They want to continue to run down our public services like they did last time, and today we're seeing they want to force more children into poverty."
National has defended those policies, saying the homes sold to foreign buyers won't impact the price of homes in what would be considered the normal price range, that there is too much fat in the public service, and that it would be up to public service bosses to determine what jobs could be trimmed.
Luxon said earlier today that getting people into jobs was more more important to pulling them out of poverty than higher benefit levels. He said National wasn't "cutting benefits" and that benefits would increase and match the cost of living.
National has previously been pressured to release the assumptions and numbers behind its tax package, but has refused to do so. Economists have variously described National's expectations for tax revenue from the foreign buyers tax as plausible, optimist, or complete rubbish.
"Contrary to what the National Party think, it's not easy to live on a benefit," Hipkins said.
"People on a benefit generally live a hand-to-mouth existence. Cutting their benefits in order to pay for tax cuts would make life very difficult for those families."
Finance Minister Grant Robertson, Labour's finance spokesman, said National' fiscal plan "relies on more cuts to services and cuts to incomes of the poorest New Zealanders" and there was a $537 million "hole" in it.
"To make matters worse, cutting incomes to fund tax cuts for millionaires is shameful. Within National's plan is a so called buffer. This is a fiction.
"If we were to put Labour's fiscal plans on the same terms as National's, we have a larger buffer.
"Also, National's plan continues no further funding for climate action" and that was a "recipe for more emissions".
"We intend to go through the detail of National's plan in the coming days."
Robertson said National's "budget is built on a sand castle".
"The fiscal prudence we we're looking for was that (National's finance spokeswoman) Nicola Willis would admit their plan doesn't add up.
Robertson said "we were all wanting to look at" congestion charging.
"Congestion charging has its place, but (National spokesman) Simeon Brown needs to say how much revenue and when.
"I would be extremely surprised if it was possible [for revenue to come next year].
"You can't base your fiscal plan on income no one thinks you're going to get - it's a sand castle."
