Prime Minister John Key yesterday rejected the idea, saying it would mean a major expansion of the welfare system and cost $1 billion over three years.
"Is it fair to taxpayers if a millionaire's partner loses their job and gets welfare?" he said.
Labour's social development spokeswoman, Annette King, said Mr Key was conveniently missing the point.
"Labour's plan, to apply until the economy recovers, actually targets the growing number of low and middle income Kiwi families which, through the loss of one income, are struggling to pay the mortgage and the food bills," she said.
"The average household income in New Zealand is $66,092, a far cry from the type of household John Key clearly thinks about."
Mr Key said Labour's new policy showed it had no idea what was happening in the recession.
"If we adopted this policy we would have to find $1 billion over the next three years and that's $1 billion we don't have," he said.
"It's not that I don't have sympathy for those people but in the end someone has to pay the bill.
"There aren't little pixies at the bottom of the garden printing cash."
