The Tauranga Business Chamber is calling on the Government to immediately adjust its student allowance criteria to help with the worker shortage crisis this summer.

Chamber CEO Matt Cowley says increasing the total income a student can earn before it affects their student allowance payment will provide businesses with much-needed relief over the peak season.

It will also support students struggling with the rapid rise in cost of living by allowing them to increase their total weekly income.

'Many businesses are struggling right now with major staffing shortages – particularly in hospitality, retail and tourism – and it's only going to get worse as we enter the peak summer period,” says Matt.

'At the same time, we have students who are employed by these businesses, who want to work more hours to combat the rising costs of living, but are disincentivised because of the income thresholds set by the Ministry of Social Development.

'We're asking the Government to urgently lift the income threshold for students, so they can work more hours over the peak summer season without it impacting their student allowance or other entitlements.”

Currently, students can earn up to $240.70 (before tax) per week before it affects their student allowance payment.

Any additional income earned above this amount is subtracted from their student allowance.

About 62,000 students receive the student allowance across the country.

The Government makes an Annual General Adjustment to all benefit entitlements on April 1 each year, but Matt believes the income threshold for student entitlements needs to keep up with the rapid inflation that students and businesses have experienced since then.

'We're seen rapid rises in both wages, and the cost of living, in the past six months, and the income thresholds for student entitlements have not kept pace.

'The Government's recent change to worker visa eligibility is a great start, but we need to do everything we can to get more Kiwis into employment for summer, and through this crisis.”