Prisoners paid $1.8m in benefits while in jail

Mistakes in benefit payments to inmates take some time to correct. File picture / Paul Estcourt

Taxpayers coughed up more than $1.8 million for prison inmates last year in payments which should never have been made.

Social Development Ministry figures show 3762 of the country's about 6500 inmates wrongly received a benefit while in prison.

The figures were released by Social Development Minister Steve Maharey in answer to written parliamentary questions and showed 54 per cent of the 3762 received the unemployment benefit and 22 per cent the sickness benefit.

They were picked up by a data-matching system but ministry spokeswoman Bronwyn Saunders told The Press newspaper that Privacy Act considerations meant it could take weeks to cut a benefit.

"In effect, the Privacy Act requires the department's national data-match centre to let the person know that they have been matched, the potential impact of the match and to give them the opportunity to challenge the match information, should it not be correct," Ms Saunders said.

Anyone picked up had 10 days to challenge the match.

National MP Tony Ryall said it seemed to be another case of the Government putting prisoners' rights ahead of those of the taxpayer and the community.

"First we have prisoners suing for hurt feelings and now we have them getting the sickness benefit after being convicted of all sorts of crimes," Mr Ryall said in a statement.

"Criminals should lose their welfare benefits the day they arrive in prison."

ACT MP Deborah Coddington revealed last week that up to 40 per cent of criminals jailed between 1999 and 2003 were on a benefit when they offended.

- NZPA