Bay benefit cheats filch $700,000

Assistant News Director and Multimedia Journalist·Bay of Plenty Times·

3 Sep, 2015 09:27 PM3 mins to read

The ministry is working with those found guilty of welfare fraud to pay outstanding costs back. Photo / File

Bay of Plenty beneficiaries have ripped off the welfare system by more than $700,000 in a month - the second-highest value of all the regions in the country.

A total of 68 people have been investigated by the Ministry of Social Development in July 2015, new figures show.

Of those, 29 people were found to have been receiving overpayments of an average of $24,535, leading to a grand total of $711,523 of benefits paid out in a single month to people no longer entitled to them.

Of all the regions, Auckland had the most investigations, 148, with overpayments established in 59 cases. That added up to an average overpayment of $30,315 and a total of $1,788,582. By comparison, Canterbury ranked third nationally with 36 investigations, resulting in 21 overpayments of an average of $17,401 and total of $365,414.

The ministry said it was now working with those found guilty of welfare fraud to pay outstanding costs back.

Te Tuinga Whanau Support Services Trust social services manager Piki Russell dealt with beneficiaries every day and said only a small number would intentionally try ripping off the system because of greed.

"[For] the majority of people it's very much based on ignorance, but in reality a lot of it is also based primarily on survival," she said.

"We have a lot of families out there really, really struggling to meet the cost of basic needs. These are the people we deal with on a day-to-day basis. They are trying to look after their children," she said.

Tauranga Budget Advisory Service co-ordinator Diane Bruin said the service often helped people caught defrauding the system, in their efforts to pay the debt back.

Sometimes it was a result of ignorance but sometimes people felt entitled to the extra money, Mrs Bruin said.

"We tell those people you might be better off talking to Work and Income and working out what you're entitled to, and sometimes they are better off, but they don't realise it; whereas if they are honest and upfront, they can end up in a better situation."

Mrs Bruin said if people were honest and upfront, the service would support them.

Nationally, 494 people were investigated with 239 cases of fraud established from average overpayments of $19,662, adding to a total of $4,699,260.

Associate Social Development Minister Jo Goodhew said the ministry was working with people to retrieve outstanding payments as "we don't want families stuck in a debt trap for receiving payments they aren't entitled to receive".

"We continue to catch people who are intentionally trying to defraud the system.

"Around 97 per cent of our welfare fraud prosecutions are successful. Over the last year, 927 people have been successfully prosecuted and we are now working with them to recover $32million in taxpayer money." A total of $9.11million had been recovered since welfare fraud initiatives began in March, 2013.

Fraudsters on rise

•The number of convicted benefit fraudsters in the Bay of Plenty rose 14 per cent in 2014.

•Statistics New Zealand data show 72 people were convicted in the Tauranga District Court in 2014 for obtaining a benefit by deception - an increase from the 63 convicted in 2013.

•People convicted of benefit fraud face paying a a penalty on top of the debt they already owe