Benefits probe leads to €10.5m saving

Almost €10.5 million of taxpayer's money was saved thanks to investigations into social benefit fraud, according to Finance Minister Tonio Fenech.

In a Talking Point on this issue, Mr Fenech says that over the past three years the government investigated over 3,750 alleged cases of social benefit fraud, resulting in 1,000 benefits being suspended and €10,481,022 saved.

Mr Fenech makes his case for clamping down on abuse in light of criticism that he is singling out vulnerable groups, like single mothers, to pay government debts in a time of crisis. He says that with the money saved the government was able to increase support where required, such as by "heavily subsidising energy prices" last summer when oil prices skyrocketed.

"We are against abuse not only because it is morally wrong but because the resources being lost at the expense of the taxpayer can be better utilised to support those really in need," he writes.

Mr Fenech adds that sometimes it is not about abuse of the system but the system itself that creates a "disincentive to work" or "encourages you to stay home and rely on government help".

Budget 2010, he says, will be "an important opportunity to tighten the fight against abuse".