New measures begin to stop repeat welfare fraudsters
Hon Chester Borrows
Associate
Minister for Social Development
13
October 2013
Media Statement
New measures
begin to stop repeat welfare
fraudsters
Associate Social Development
Minister Chester Borrows has welcomed the start of new
measures to prevent beneficiaries who have previously ripped
off Work and Income from cheating the system
again.
“We know the overwhelming majority of
beneficiaries are honest and follow the rules,” says Mr
Borrows.
“Yet those very few who choose to defraud the
system place a very real cost on a system which should be
there to support our most vulnerable
citizens.”
The new ‘low trust client’ rules,
which come into effect on Monday 14 October, will apply to
those who have previously been convicted of welfare fraud,
or had overpayments established following a fraud
investigation. It is expected to apply to around 1500
people per year.
“These people have proven,
through their own actions, that they are willing to be
dishonest with the welfare system and take money they are
not entitled to,” says Mr Borrows.
“With these
new measures we will have sensible steps to prevent them
repeating this behaviour, such as requiring them to deal
face-to-face with a single case manager.
The
changes are part of a package of initiatives announced
earlier this year to better prevent, detect and punish
welfare fraud. These include:
changing the law to hold
partners of beneficiaries complicit in ‘relationship’
fraud offending to account;
new joint agency fraud
investigations which have already seen charges laid against
28 people as part of a $375,000 scam in Auckland;
and
enhanced information sharing between the Ministry of
Social Development and Inland Revenue, with over 3000
illegitimate benefits cancelled since it began earlier this
year.
More information on the Government’s
welfare fraud initiatives can be found on www.beehive.govt.nz
ENDS