June amnesty saves $2.6M

Press, 2 July 1983, Page 8

June amnesty saves $2.6M

PA Wellington Last month 468 people saved the taxpayer $2.68 million a year by admitting to the Social Welfare Department that they were not entitled to their benefits, said the Minister of Social Welfare, Mr Young, yesterday. The month-long immunity in June, which allowed beneficiaries to cancel benefits to which they were not entitled, had been very satisfactory, he said. Nearly half the people

who cancelled their benefits were on unemployment benefit and more than a third were receiving the domestic purposes benefit. A few were receiving National Superannuation or invalids or sickness benefits. Mr Young said the total value of the benefits cancelled was about $50,000 a week. The cancellations had an estimated annual value of $2.6 million if the overpayments had continued for another full year. In several cases people

had for several years been receiving a benefit to which they were not entitled. “Together with earlier exercises, these adjustments of benefit payments represent annual savings to the taxpayer of nearly $4 million.” Although people were not expected to give a reason for the overpayments, many volunteered the information, Mr Young said. Most had either returned to work or were living in a de facto relationship. The few super-

annuitants involved mostly had not declared they were receiving a British pension. "I am pleased the exercise gave them the opportunity to exercise their conscience,” said Mr Young. “But I must say I deplore the fact that a number of people did not correct what they knew to be false payments as soon as their circumstances changed.” Mr Young said last month’s immunity was unique — he saw no possibility of its being repeated.