A Bill to crack down on fraudulent claims for financial assistance was passed by the House of Assembly with cross-party support yesterday.

The Financial Assistance Amendment Act 2008 amends the Financial Assistance Act 2001 to "make provision to prevent recipients whose awards have been revoked by the Director from applying for an award before the expiration of certain periods".

Those whose payments have been revoked by the Department of Financial Assistance are banned from applying for subsequent awards until specific time periods have elapsed. On the first occasion, this amounts to three months; on the second, six months; and on the third revocation, one year.

Outlining the Bill, Social Rehabilitation Minister Dale Butler said its purpose was to prevent abuse of the system.

"We still get calls from people who say their neighbours have just got back from a trip and we are called out to investigate," he said.

"We appreciate the calls we get from concerned Bermudians and can assure them we will investigate everyone."

Mr. Butler said that in 2002, 64 cases of attempts to defraud Government of public money were investigated. In 2003 the number was 120; in 2004, 63; 2005, 75; 2006, 79; and in 2007, there were 87 cases.

"We're delighted by the progress that has been made and I'm looking forward to informing the House of further progress after these amendments today," said Mr. Butler.

In terms of repayments, Mr. Butler said: "We were able to retrieve $100,000 to be given back to Government. I commend the Investigative Officer and her team."

However, he said civil servants were frustrated by people returning the next day to continually exploit the system.

"These people call back the next day and say 'Oh well, I can reapply'. But these people are defrauding," said Mr. Butler.

"We do have cases where people come in for a second bite of the cherry."

The Minister gave examples such as people lying about their assets, including property, vehicles and shares. Those out to cheat the system also gave misinformation about income, such as having a second job.

Mr. Butler said: "There was no penalty in the past but hopefully here today we will change that with the help of the Opposition.

"The system and the law needs to be changed. These changes will help to prevent fraudulent behaviour, therefore protecting the public purse."

Shadow Health Minister Louise Jackson said: "I want to congratulate Government on the recent successes they've had in dealing with the Financial Assistance Act and the Department, and want to congratulate the Minister who has done a commendable job in revamping the system.

"We are very, very much aware that this system of welfare finance can be abused. In order to prevent that abuse we are with you all the way."

However, she added: "But we are concerned about some of the penalties against very vulnerable people who have to use this system. As the Minister has said, most of the people who are in receipt are the disabled, single mothers, the unemployed and low income families. Many have children. We want to be assured that these children will be well taken care of."

Jon Brunson, Shadow Minister of Youth, Sport and Recreation, said that the 2000 Census had revealed a third of Bermuda's population was "either poor or near poor".

"That's 15,000 Bermudians," he said. "It's becoming more and more expensive to survive in Bermuda today. A third of the population is struggling, but according to the data only 1,000 people are receiving financial assistance."

Leader of the Opposition Kim Swan described the measures in the Bill as "punitive".

"There could be a better way of dealing with financial assistance to prevent us from dealing with it in such a punitive way.

"Quite possibly the person most in need of financial assistance is not necessarily the person in violation, but their dependents. They have families as well and we need to see to those needs. In a nutshell, it is 'don't penalise the children'."

Mr. Butler replied: "The Opposition has responded by saying this is a punitive way to go. We are dealing with the Financial Assistance Amendment Act. Penalties are for abusers who tend to be very clever, who find unbelievable means and can throw it in your face."

He added that anyone whose payments were revoked would still be able to appeal.