Almost $200 million of taxpayers' money has been mistakenly given out to welfare beneficiaries in the last year.
Figures obtained by ONE News reveal the scale of the problem facing Work and Income, which has only been able to claw back $140 million of the $195 million it mistakenly paid out.
Work and Income says most overpayments happen because beneficiaries don't reveal they have found a job, but one beneficiary, mistakenly given $6000 over a year, told ONE News she had informed the department and they never adjusted her payments.
-
Related
"The manager of the department had asked for figures, but had never put them into the computer and I only became aware of it when they rang to investigate me," the woman, who asked not to be identified, said.
Kay Brereton from Wellington Benefit Support said she had also heard of cases where WINZ had found the beneficiary a job but still failed to adjust their payments.
In some cases the money can be recovered, and is considered a debt; The Ministry of Social Development currently has nearly $1 billion of debt - enough to run ACC for an entire year.
However, in cases where WINZ is at fault the law says it can't claim the money back.
The situation has not improved since ONE News last investigated the issue more than a year ago , with similar levels of debt and payments being wrongly paid out.
Social Development Deputy Chief Executive Debbie Power said since the last story the department has been checking on beneficiaries more regularly.
"If you owe money to the Ministry the debt stays on your record for as long as we can continue to pursue it, and we will pursue it right up until potentially you have no means of paying it back," she said.
Latest NZ News Video
-
ONE News Minute 9am update: May 26 (1:00)
-
Kids cough up $14m for Government (1:50)
-
Education ministry 'barbaric' (1:55)
