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James Debono
The government saved a total of Lm 526,105 last year by clamping down on benefit fraud, three times the amount saved in 2004 when just 165 persons had their benefits stopped for making false claims.
Last year a total of 526 people had their benefits stopped.
A breakdown of figures shows that more than half the benefit abusers caught in 2005 made false claims for unemployment assistance. But only one case involved a bogus claimant for invalidity pensions.
Invalidity pensions, which cost the country a whopping Lm16 million are paid to persons deemed incapable for suitable full or part-time work. The law has been recently amended to close the net on potential abusers.
All cases of benefit fraud involved non-contributory benefits which are not based on past social security contributions, but on the basis of a financial means test, making it easier for the government to control abuse.
The second most common type of benefit fraud involved people claiming sickness assistance, a non-contributory and means-tested benefit amounting to Lm7.55 a week. Sickness assistance can be stopped when the beneficiary marries a spouse who is employed, or when the beneficiary commences work.
The third most common benefit fraud in 2005 involved persons living off social assistance – popularly known as “relief” – a benefit costing the country Lm22 million.
People on relief receive Lm32.63 a week and an extra Lm3.50 for each additional person living in the household. 19 single parents made false claims for social assistance.
Single parents may work as part-timers without losing their right to full assistance, as long as their total income together with the social assistance does not exceed the national minimum wage of Lm55.63. Single parents may only earn Lm19.50 per a week to fully qualify for this benefit.
jdebono@mediatoday.com.mt
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