What a Labour government means for your money

National's planned tax cuts are off the table but students, households with young families and low-income workers are set to get more in the pocket under the new Labour-led Government.

New Zealand First last night announced it would form a coalition with the Labour party and the Green party will provide support on a confidence and supply basis.

Policy tweaks are yet to be revealed, but in its pre-election promises Labour said it would lift the minimum wage from $15.75 an hour to $16.50 by April next year.

For students it plans to make the first year of tertiary education free and increase the student allowance and living cost loan amount by $50 a week from January.

It has also promised to increase paid parental leave from the current 18 weeks to 26 weeks and boost working for families benefits.

Its families package includes a promised $60 a week for all children in the first year after paid parental leave finishes and for up to three years for low-income families.

Older voters will also see some benefits with a winter energy payment for those on superannuation as well as those on a main benefit.

Single people will receive $450 a year and couples or those with children will get $700 a year, paid monthly from May to September.

Labour promised the families package would come into force from July next year.

Labour has also promised to keep the age of eligibility for New Zealand Superannuation at 65 and begin contributing to the $35 billion New Zealand Superannuation Fund, which was set up to help pay for the future costs of retiring baby boomers.