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People who would be in line for the Maori Party's suggested $500 temporary relief package say there should be checks, otherwise there is the potential for abuse.
Hauraki-Waikato candidate Angeline Greensill announced the policy in Hamilton at the Enderley Community Centre.
Parts of the suburb are known as Poets' Corner, with street names such as Shakespeare Ave and Tennyson Rd, but it is one of the country's poorest neighbourhoods, with a decile 10 ranking, the worst on the scale of socio-economic deprivation, in the 2006 Census.
The package would be paid in a tax-free lump sum to families of 230,000 children living in poverty in the first week of December.
Mother of three Adelaide Wharakura, 25, who works part-time at the community centre and takes home $197.45 a week, backed the scheme.
"That would definitely make a big difference to my family and there's a lot of people who struggle around here."
But the after-school programme supervisor, whose centre makes sure 30 to 40 children get three square meals a day, said she also had reservations.
"Who it makes a difference to depends on which families you give it to. There are a lot of drugs and alcohol. If I'm being honest [there are some who would] rather spend money on things like that. This money shouldn't be spent like that - there should be some checks or rules."
Ms Greensill said it was likely that for some children the money wouldn't trickle down and the majority would miss out.
And if Labour could institute a bank retail deposit guarantee scheme worth millions of dollars and potentially billions to tide them over the bad times, then those most vulnerable in society should also get some relief.
"They're talking about propping up the banks, why not invest in our people in poverty? They [the Government] should spend money on real people and address an issue which has been on their books for so long."
While the specifics hadn't been worked out, as a starting point New Zealanders on incomes of less than $25,000 might qualify for the Maori Party scheme, she said. The party also wanted superannuitants to be eligible for the $500, at a total cost of about $136 million.
There would be flow-on effects to the retail sector as families would be spending, but more importantly, children who had never experienced a decent Christmas might get one, Ms Greensill said.
"$500 per child is a much needed boost to families struggling to pay the bills and feed the kids. It is only a temporary measure but one successfully applied in Australia ... to keep the economy moving and to support families during an already high-stress period."
