A progressive power pricing system whereby a portion of all households' power bills has a set low price is among measures laid out in the Green Party's $4.46 billion a year alternative budget.
Progressive pricing would give all households a set low price for the first portion of their power bill, and use over that - seen as discretionary - would be set at a higher rate.
About 50 people a day were hospitalised with respiratory illnesses caused by living in cold houses -- a cost to the nation of $54 million a year, Mrs Turei claimed.
"Progressive pricing would help all of us but has the biggest positive impact on our poorest families," she said. "There are direct savings on power bills and there are flow-on benefits of more productivity and less health spending."
Another key plank of the package was making the first $10,000 of income tax-free for all New Zealanders - a measure which would reduce the tax take by about $3.2 billion a year.
Rounding out the eight-point package were:
• a capital gains tax, except on family homes.
• in-work tax credits for all low-income families with dependent children.
• reinstating a discretionary special benefit.
• building 6000 new state houses in the next three years.
• investing in community housing.
• securing long-term rental tenures.
Mrs Turei said inequality was hurting all New Zealanders by lowering life expectancy in all income brackets, increasing obesity, and filling hospitals and prisons.
"The smart move is to focus on reducing the gap between the haves and the have-nots so that we are all better off," she said.
"This budget package shows that we can start to narrow the gap right now."
