National would keep the Working for Families scheme in its entirety if it wins this year's election, says leader John Key.
Last year, National signaled that it might make changes to the Working for Families tax credit scheme, but Mr Key says that will now not happen.
He says National would have preferred a different model, but the complexities that would be added to the scheme did not warrant any changes, which would have netted savings of only about $1 million.
Mr Key says it is very important in such difficult economic times that familes have no change in their incomes.
Finance Minister Michael Cullen has described the move as just another flip-flop by Mr Key, which clearly shows he is not to be trusted.
Dr Cullen says it confirms National will have to borrow to fund its tax cut plan because it had been intending to use savings from Working for Families to pay for it. But Key rejects that suggestion.
United Future leader and Revenue Minister Peter Dunne welcomed Mr Key's announcement, but said National would struggle to introduce tax cuts without borrowing or cutting spending if it won the election.
ACT leader Rodney Hide expressed disappointment with National's position on Working for Families and warned that it would not be able to afford bigger tax cuts than those already promised by the Government.