"But people do have debt and that makes it hard to live on the benefit. Some people are desperate and they will do anything.
"The answer would be more jobs in Northland. We need a big company to move to Northland and give us lots of work up here, then there wouldn't be as much fraud."
In a recent case, a primary school teacher admitted claiming more than $44,000 in various benefit payments over six years.
Avalina Deonie Cook was convicted by the Whangarei District Court on September 19, 2014 and was sentenced to six months' home detention and ordered to repay $44,512.
Associate Minister for Social Development Jo Goodhew said the ministry had stepped up efforts to reduce benefit fraud.
"Over the past two and a half years around 9500 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," she said.
A vast majority of the fraud has been identified through increased information sharing with Inland Revenue - making it easier for the Social Development Ministry to identify clients who under-declared their incomes, which would have affected benefit payments.
Another key initiative was stricter monitoring of clients who had previously committed fraud.
Mrs Goodhew said monitoring was a success and thousands were being monitored to ensure they were receiving the correct benefits. "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.
"These reforms are about stopping people receiving benefits they aren't entitled to, and ensuring the benefit is available for those who genuinely need it," she said.
"We expect to see fewer cases of benefit fraud."
Benefit obtained by deception
2013
Convicted : 67
Diversion, discharge without conviction: 4
Not proved: 4
2014
Convicted: 109
Diversion, discharge without conviction: 1
Not proved : 11