ACT leader David Seymour has hit out at National's "irresponsible" promise of giving up to $3000 to expecting parents to spend on baby support services.
Seymour said a universal payment would mean even millionaires could receive a hand-out from the Government. He said the best way the Government can support future generations is by lessening their debt burden.
"Big spending promises are irresponsible in a climate of too much debt already. Labour are wasting enough money as it is without National competing with them," Seymour said on Thursday.
National would not give cash grants to new parents. Rather, they would receive a nominal funding amount against which they could commission approved services, including midwife services or access to mentoring.
The funding could only be used to purchase approved and specified services, however parents would have full autonomy about how to allocate their funding from among the approved options.
Most parents would receive a funding allocation of $3000, while those identified through National's promise of enhanced screening as being at higher risk or having additional needs would be allocated up to $6000.
Seymour said enhanced screening for newborns is smart, but universal welfare is irresponsible in the current climate.
"Following COVID-19 the Government has committed to borrowing $140 billion on top of the $60 billion debt it had pre-COVID," he said. "For many families, their biggest debt will be the one the Government took on for them."
ACT has proposed cutting benefit rates, reinstating 90-day trials for businesses, pausing minimum wage increases for three years, putting interest back on student loans, scrapping KiwiSaver subsidies and abolishing the winter energy payment.
Auckland Action Against Poverty spokesperson Brooke Fiafia told Newshub last month the proposal to cut benefits would only deepen New Zealand's inequality crisis.
National's new policy came after a new UNICEF report reflected poor rates of child wellbeing in New Zealand between 2013 and 2018.
Prime Minister and Child Poverty Reduction Minister Jacinda Ardern said the report pre-dates progress in rolling out the Government's $5.5b billion Families Package and setting child poverty reduction targets.
Data published by Stats NZ in February found there had been "no significant change" in material hardship rates since 2017.
But Ardern has argued the Government improved wellbeing by increasing benefits by $25 a week and doubling the winter energy payment during the coldest months.
"That report uses data as old as 2013, so it isn't necessarily a snapshot of the progress that has been made in recent times in New Zealand," Ardern said on Thursday.
"But it does emphasise that it is so important as a country that we continue to focus on wellbeing and the mental health of children and young people.
"Obviously this is reflecting predominantly the last Government. It's old data. What we do know from the latest data that we do have is actually this Government has improved child poverty on seven out of nine of the measures.
"What we want to do, though, is keep going."
Ardern said there is always more to do.
"Our job will not be done until we as a country see children out of poverty altogether. We are relative to many other countries a country that is wealthy enough to be able to achieve that goal. We do need, however, more than three years to achieve it."
National would keep the Government's BestStart policy, where families who qualify can receive a $60 per week payment until their baby turns one, no matter how much they earn.
After the first year, a parent can continue to receive payments until their child turns three if they earn under $93,858.
