Watch Andrew Little speak to Morning Report's Guyon Espiner:
If elected, Labour would introduce a scheme that would give $700 a year to couples and parents with children at home, and $450 to people who are single, to ensure they can afford the cost of heating damp, poorly insulated houses between May and September.
The $374 million a year policy is part of the party's families package, which will be announced today.
Labour leader Andrew Little told Morning Report all beneficiaries and superannuitants would be eligible for the scheme, thought they would still have to apply.
"Administrative efficiency dictated that we just make it largely universal."
With just two months until the election, Mr Little said he was certain a three-way coalition with the Greens and New Zealand First was possible - despite bickering between the latter two parties.
Mr Peters again said on Morning Report that he didn't take accusations of racism lightly and there would be consequences.
"I didn't say what the consequences were going to be but I said that when you think you can make statements like that without a response, you have got to be crazy."
Mr Little said the parties had good relationships, and while there would be the odd difference and spat, they were all committed to making a difference for all New Zealand.
Mr Peters said New Zealand First's priority was its own causes and policies.
"Our job is to get the maximum vote we possibly can for the causes and the policies that we stand for and that's what I'm doing."