The NZ Government will today reveal a new compensation package to be offered to homeowners hit by the country’s $NZ11.3 billion ($9 billion) leaky home crisis.

Prime Minister John Key says the package would be a “significant” improvement on an earlier deal proposed by the Government last year.

“It’s the best offer we can do,” he told a radio station ahead of Thursday’s Budget.

Under the earlier deal, which attracted widespread criticism, the Government proposed a 65% homeowner investment, 25% council contribution and 10% from the Government.

Weak legislation, poor workmanship and the use of inadequate materials are blamed for the leaky homes crisis, which mostly affected homes built in the 1990s.

As well as sustaining water damage, leaky homes have also been linked to potentially dangerous health concerns for occupants.

A PricewaterhouseCoopers report says an estimated 42,000 properties are affected, with a total repair bill of about $NZ11.3 billion.