Wairarapa benefit cheats under the gun

NEW MEASURES: Associate Social Development Minister Chester Borrows is clamping down on benefit crime, while Wairarapa Advocacy Service advocate and manager Trevor MacKiewicz warns people not to defraud the ministry. PHOTOS/FILE

Come clean if you are living in a marriage-type relationship, beneficiaries are warned.

The advice comes in the wake of the Government declaring new measures which will allow contractors to snoop on beneficiaries and then report back to Work and Income on what they find.

Associate Social Development Minister Chester Borrows calls it stealing to claim a benefit as a single person if you are living in a relationship.

"Welfare fraud is a crime, just like stealing from grandma's purse or dipping into the till at work," he said.

Wairarapa Advocacy Service manager Trevor MacKiewicz said he suspected at least a "couple" of his clients were defrauding the ministry.

It's something people should never resort to doing - no matter how hard it got, he said.

"We tell people it's something they shouldn't be doing. If you get caught it's just not worth it because you will just end up in more trouble and before the courts. You must declare if you are in a relationship. It's just not worth it because they will be watching very closely now."

While he doesn't see fraud as acceptable, he also doesn't think the new measures are a way to handle the situation.

"I question whether it is a breach of privacy," he said. "I have major concerns it is invading their privacy."

As for the cost, he doesn't believe a new system needs to be set up when the old system of investigations already works.

"Winz are going to have private people doing this snooping. Investigators are already doing this. Why spend more money on something already in place? It's just snooping on people in their own home."

People were struggling and this needed to be addressed, Mr MacKiewicz said.

"The benefit just isn't enough. It's far too low ... families need to be the focus."

Mr Borrows said the trial, which would start mid-2014, was about helping people avoid benefit overpayment or debt and ensuring they knew the rules.

"The vast majority of beneficiaries already manage this, but those who don't can find themselves facing huge debts and criminal charges," he said.

The trial includes face-to-face meetings in homes or Work and Income offices along with letters and phone calls.

New beneficiaries will receive visits 14 weeks after the benefit is approved. Following these meetings, if a relationship is detected, decisions will be made including cuts to payments or the laying of fraud charges.

Figures show that in the first nine months of this year more than 5300 benefits were cancelled - saving an estimated $56 million.

Other changes being considered include partners of beneficiaries facing fraud charges.

"It's about testing communication channels and seeing which ones work best."

It will not target those previously caught being dishonest.