Benefit cheat has 215 years to pay

Our biggest benefit fraudster was caught ripping off $224,000 - and is paying it back at just $20 a week.

It will take the welfare cheat 215 years to repay taxpayer money that was taken over 22 years.

The repayment scheme has been labelled a farce by National's welfare spokeswoman, Judith Collins, who says the four leading welfare fraudsters have together ripped off $807,032.

Under repayment deals in the four cases, taxpayers will not get their money back until the year 2825.

Mrs Collins is calling for welfare fraudsters to work off their debts in the community. She wants fraudsters banned from receiving benefits.

Keith Manch, the Ministry of Social Development's guardian of the welfare system, says under the current system nothing more can be done to get the money back faster.

"They work on the basis of getting as much as possible without putting the client below the poverty line," he said. "The whole thing is about trying to recover as much as possible."

It has also emerged that one beneficiary, who ripped off $200,460, went to the Ministry of Social Development after being caught and asked for financial assistance. The beneficiary was given another $260.

Only two of the four beneficiaries have been convicted of fraud. One received a four-month jail sentence and the other a seven-month sentence. A third is awaiting trial and the other will not be prosecuted because a case cannot be proven.

The fraudster jailed for seven months received extra benefit assistance. The service considered someone facing charges innocent until proven guilty, and the money was paid before conviction, Mr Manch said.

He said even though the amounts owed by benefit fraudsters were large, it was more difficult than ever to get away with cheating the system. Data-matching between government agencies, and a smaller pool of beneficiaries, made it easier to catch those abusing welfare.

Mr Manch said many welfare cheats who owed large amounts had been taking benefit money while working.

Mrs Collins said she wanted to know how many of the fraudsters were still receiving benefits.

She wanted a tougher line taken with those who were caught defrauding the system, including banning them from receiving more taxpayer money. If they needed money, they should work, she said.

"I'm staggered by these people. There must be a time when people lose their right to ask for benefits. The benefit system should be for helping people who need it, not about helping freeloaders."

She said a work scheme should also be explored to reduce the large debts through service in the community.

- HERALD ON SUNDAY