Benefit fraud measures get approval

Press, 24 January 1987, Page 3

Benefit fraud measures get approval

PA Wellington The Government has approved a package of measures to combat benefit fraud and abuse, said the Minister of Social Welfare, Mrs Hercus, yesterday. The measures, to be introduced this year, include:

• The establishment of benefit payment control units in 10 Social Welfare districts for a 12 month trial.

• Tougher penalties for offenders.

• Changes to some Social Welfare internal checking and control systems.

Approval in principle had also been given to an amnesty from prosecution, although details had not been worked out. “There are a number of options available in this regard,” Mrs Hercus said. “The amnesty could be a partial or full one, it could extend over several months or be limited to a short period, it could cover all beneficiaries or just certain groups.”

The measures stem from last year’s review into benefit fraud and abuse, commissioned after

it was found the department was losing an estimated $24 million a year in errors in unemployment and domestic purposes benefits, $l7 million of which was attributable to client error.

Mrs Hercus said that by Western standards, the level of benefit abuse was small, less than 5 per cent, but she was committed to reducing the figure.

The measures announced yesterday were expected to result in net savings of at least $l2 million a year.

Mrs Hercus said the Government also accepted the review’s finding that some abuse was related to the fact that the benefit system was not meeting some people’s needs. “This has been particularly apparent in a number of submissions to the income maintenance task force by clients and members of the public and it will be paying special attention to this area,” she said.

“Meanwhile, the department is taking steps to help reduce abuse through its own errors and is working on improving its relationship with its clients.”