Fraud reforms continue to save taxpayer money

Associate Minister for Social Development Jo Goodhew has welcomed news that since benefit fraud reform initiatives began two years ago, up to $60 million of taxpayers’ money has been saved.

“Over the past two and a half years around 9,500 benefits have been cancelled after fraudulent and illegitimate payments were discovered. These changes hold people to account for their actions, and make it difficult to defraud the welfare system,” Mrs Goodhew says.

A vast majority of the fraud has been identified through increased information sharing with Inland Revenue. This allows MSD to quickly identify if a client has under-declared their income - which can affect benefit payments.

Another one of the key initiatives is stricter monitoring of low-trust clients where they have previously committed fraud.

“We’ve identified around 3000 clients that fall into this category – and it’s fantastic to see that since low-trust case management was introduced in October 2013, as at 31 December 2014 none have re-offended,” Mrs Goodhew says.

Minister Jo Goodhew says it’s important to look at ways to stop benefit fraud before it starts.

“These reforms are about stopping people receiving benefits they aren’t entitled to, and ensuring the benefit is available for those that genuinely need it,” Mrs Goodhew says.

“We expect to see fewer cases of benefit fraud as our case officers continue working closely with clients to ensure they declare their income and any changes to their circumstances that may affect their entitlement.”