A reduction in funding to the Government's home insulation scheme will mean the Energy Efficiency and Conservation Authority has to cut 20 percent of its staff, the Labour Party says.
Energy Minister Simon Bridges said the funding was continuing but in what he called a more targeted fashion, and he confirmed staffing numbers would change.
Labour Party energy spokesperson David Shearer said there were still about 600,000 homes in New Zealand which were not insulated, and the Budget cuts meant there would be money for only a further 15,000.
"I don't understand why, unless it's just simply to get the Budget across the line and into surplus," Mr Shearer said.
"That's the only reason I can see, because we know that when you have warm, dry homes, you have less health problems, less kids going to hospital with rheumatic fever and respiratory problems.
"Why would you want to cut it? It's a good programme."
Mr Bridges said there may be more work for EECA in the future.