The Government has stopped 5300 people receiving benefits, saying they were costing about $56 million a year.
The crackdown is the result of a joint operation between Inland Revenue and the Ministry of Social Development.
Chester Borrows. Photo: NATIONAL PARTY
Associate Social Development Minister Chester Borrows said on Tuesday that people were found to be in work and earning income other than a benefit.
The crackdown is a result of information-sharing begun in March this year. The Ministry of Social Development is now comparing its records with Inland Revenue's to identify working age beneficiaries who have not accurately reported their income to Work and Income.
Mr Borrows said the Government is looking into how the money will be recovered.
"Whether or not there's a prosecution before the court, whether there's some alternative action and we just get the money back. But any way, we'll be getting the money back."
In addition to the 5300 cancellations, another 2995 beneficiaries have had their benefit altered to reflect the income they are receiving.
Mr Burrows said a trial is also underway in which officials visit people who are on the Solo Parent Support benefit, formerly the Domestic Purposes Benefit, to ensure their situation has not changed and they are still entitled to support they are getting.
But a group representing beneficiaries is outraged that some people on the Solo Parent Benefit are being visited.
Beneficiary Advocacy Federation spokesperson Kay Brereton said beneficiaries have been treated that way in the past.
"It's a return to the 90s where benefit fraud investigators were coming round cold calling and knocking on people's doors, standing outside and kind of monitoring who came and went and drawing conclusions."
