Government Introduces New Legislation to Combat Benefit Fraud

The Government wants to put a stop to benefit fraud within social insurance, including the notorious assistance allowance. Now the Government is moving forward with new legislation where authorities will get more tools in the fight against organized crime.

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Government Introduces New Legislation to Combat Benefit Fraud
Photo: Viktoria Bank/TT

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A report last week showed that all larger private assistance companies in Sweden have employees linked to organized crime.

It's incredibly serious, I must say. The benefit fraud and criminality within social insurance and not least assistance are extensive and deeply problematic, says Minister for Elderly Care and Social Insurance Anna Tenje (M).

During Thursday's meeting, the government will decide on a referral to the Council on Legislation with proposals to stop benefit fraud.

Where there is money, there are criminals. We are firmly determined to strangle the criminal economy and thereby crack down on organized crime, says Tenje.

"Long-awaited and requested"

Banks, insurance companies, and employers will be given extended obligations to provide information on income, work, and residence that authorities – primarily the Social Insurance Agency and the Pensions Agency – need for their control work.

This has been long-awaited and requested by the authorities for a long time, and which we are now providing an opportunity for, says Tenje.

The government also proposes in the referral to the Council on Legislation that "an explicit right" is introduced for municipal social welfare boards to access individuals' income information from the Tax Agency.

Also companies

The Social Insurance Agency and the Pensions Agency will also be able to access more information about legal entities.

This will be important, not least to be able to stop unscrupulous assistance companies, or for that matter dental care companies, that do not conduct the business they claim to, and barely exist, says Anna Tenje.

According to the government, it is estimated that between 15 and 20 billion kronor are paid out incorrectly from the welfare systems each year.

Of the 15 to 20 billion, half is estimated to be pure and simple benefit fraud and goes to organized crime, says Anna Tenje.

The legislative changes are proposed to come into force from December 1.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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