The government is planning to step up its fight against benefit fraud by setting up a centralised Single Means Testing Unit responsible for verifying claims and making sure that benefits are not abused.

We have learned many lessons and plan to improve our watch for fraudsters

The new unit, outlined in the pre-Budget document for 2013 published by the Ministry of Finance, would rationalise investigations and “provide for a controlled and professionally developed system of means testing”.

“Although different departments would retain their autonomy in deciding entitlements to services, they would all use the certification issued by the Means Testing Unit,” the document states.

This year, Malta is spending some €750 million on social welfare schemes, which, apart from contributory benefits such as old age and retirement pensions, also include a raft of means-tested benefits such as assistance to unemployed people and low earning households, children’s allowances, disability and invalidity pensions and assistance to single mothers.

Although it is difficult to estimate the level of abuse of these benefits, it is a known secret that abuse is rampant and that it is costing the exchequer millions of euro a year.

In 2005, the government set up a Benefit Fraud and Investigations Directorate within the ministry responsible for social security.

During its first year, the small team of investigators had uncovered hundreds of fraud cases and some €3.5 million worth of benefits were discontinued. This situation was repeated every year.

“The government’s aim now is to go a step further and conduct investigations taking a more holistic and professional approach,” a government spokesman told The Times yesterday.

“We have learned many lessons in the past years and we plan to use this experience and improve further our watch for fraudsters.

“After all, these funds are coming out from our taxpayers’ pockets and should be directed towards who is really entitled to them,” he said.

The proposal of a “super investigations unit” is one of a series in social welfare being considered by the government for the 2013 Budget.

It wants to carry on with reforms to the service pensions and analyse and review social security entitlements for single parents “in view of Malta’s socio-economic realities”.

The document also identifies the need for change in pension entitlement for working widows with dependent children.

It is being proposed that this category of widows will continue to receive their pension after their children have turned 21 and are still studying or are unemployed.

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