Targeting benefit fraudsters

National intends clamping down harder on beneficiaries who are defrauding the system or who avoid job interviews when they are asked to take a drugs test.

Welfare continues to be a strong part of National's election campaign and the latest announcements come soon after recently released plans to replace the current system with three new benefits. Also, National plans to get more people back into work, including single parents.

Prime Minister John Key said yesterday that under National, there would be a stronger, more proactive stance against those who abused and defrauded the welfare system.

Jobseekers whose recreational drug use affected their ability to apply for or secure a job would also be sanctioned.

Those with drug addictions would be supported to overcome their illness. In addition, benefit recipients on the run from the police would have their benefit cancelled.

"Welfare fraud of any kind is unacceptable," Mr Key said.

"National will make it easier to match information in benefit applications with information held by other agencies to catch fraudsters sooner, and we will make it possible for authorities to actively seek to recover money by selling such fraudsters' assets.

"This year alone, Work and Income's data matching found around 6% to 12% of people were receiving benefit payments they weren't entitled to.

This shows we have to do better by the taxpayer to safeguard their money and protect the integrity of the welfare system."

In the 2010-11 financial year, there were 690 benefit fraud prosecutions, involving more than $22 million, with a further $183 million counted as overpayment, because it fell below the prosecution threshold.

Jobseekers who did not apply for a job because they were asked to take a drug test, or who failed a pre-employment drug test, faced having their benefit cancelled, Mr Key said.

Too many young people, especially, were not applying for a job if a potential employer asked them to take a drug test.

If left alone, those young people were at risk of long-term welfare dependency, he said.

Beneficiaries evading a police warrant would also have their benefit cancelled.

Social Development Minister Paula Bennett said most New Zealanders would be appalled to know that someone could continue getting a benefit while on the run from the police.

"National has reviewed this and will not pay for criminals to evade the justice system."

 

 

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