Govt 'cranking up' efforts to reclaim overpayments

Published: 7:40PM Thursday February 09, 2012

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The Government is planning to "crank up" its recovery of money mistakenly overpaid to beneficiaries.

Figures released to ONE News revealed almost $200 million of taxpayers' money was wrongly paid out to those on welfare last year.

Work and Income has been able to claw back $140 million of the $195 million it mistakenly paid out, leaving $55 million outstanding.

In total the Government is owed about a billion dollars from beneficiaries and it is determined to get it back.

"I don't think anyone should be happy with that level of debt," Associate Social Development Minister Chester Borrows told ONE News.

"I think that the staff could do better and beneficiaries could do better with advising the department with their change in circumstances."

The majority of beneficiaries are paying the money back, but 43% are only contributing $10.50 or less a week.

A recent report said this rate was "less than the minimum recommended", however some beneficiaries say they simply cannot afford to pay back more.

Kay Brereton from Wellington Beneficiary Support said it can make a difference for people on low incomes.

"If you're only getting $200 a week and you get a letter saying you owe $500 that's huge, so even though it only sounds like a small amount of money, it's very distressing."

The Ministry of Social Development says the debt's mostly the fault of beneficiaries who don't notify WINZ that their circumstances have changed.

It says it's ramping up checks on beneficiaries, but can't say how much of the overpaid welfare money will ever come back.

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