Debt slashed in welfare fund through fraud investigations
Outstanding debt in the Department of Financial Assistance was cut by 62 per cent as a result of investigations into fraudulent claims and other illegal activity.
Tinée Furbert, the Minister of Youth, Social Development and Seniors, announced the news after she tabled the Department of Financial Assistance Annual Report 2025-26 in the House of Assembly today.
Covering the period from April 1, 2025 to March 31, 2026, the report showed there was “greater accountability”, with outstanding debt arising from investigations reduced by 62 per cent to $109,881.
Ms Furbert said there was stronger protection of the public purse, with more than 81,900 transactions monitored, strengthened fraud detection, staff training and compliance.
She revealed that the department's investigative officers received, on average, nine tips per month, finalised the documentation of fraud classifications and providing officers with a standardised framework to identify fraud patterns, emerging trends and potential red flags.
Ms Furbert said: “This initiative is expected to strengthen early detection and prevention and reduce the incidence of overpayments.
“Those who abuse the financial assistance system take from those who need it most, and this government will not tolerate it.
“The department works closely with the Attorney-General’s Chambers to recover overpayments made as a result of fraud and abuse.
“During the reporting period, 16 client cases valued at approximately $82,996 were referred to the Attorney-General’s Chambers for legal restitution.
“I am pleased to report that outstanding debt arising from investigations was reduced by 62 per cent, to $109,881 — a clear demonstration of accountability in action.”
The report showed that the Government delivered $52.19 million in support through various programmes during 2025-26.
The funds for the department cover the Financial Assistance Programme, the Child Day Care Allowance Programme and the Short-Term Relief Benefit Programme.
Highlights from the report include a 1 per cent increase in funds across all of the programmes and the average monthly number of persons receiving assistance rising by 3 per cent to 2,045.
In addition, Ms Furbert spoke on “meaningful reform” for seniors, with the pension income excluded from the calculation of financial assistance awards increased from $500 to $800, and greater accessibility through the introduction of a digital Short-Term Relief Benefit application form.
She reminded MPs that the Financial Assistance Regulations 2004 had been amended to increase the amount of pension income excluded.
The 3 per cent increase across the programmes is largely attributable to growth in the “pensioner category”, which increased by 48 people, and the “earnings low” category, which increased by 22.
“Encouragingly, the increase in ‘earnings low’ clients partly reflects individuals moving from the able-bodied unemployed category into employment,” said Ms Furbert.
Pensioners and persons with disabilities continue to represent the largest proportion of financial assistance recipients.
Total expenditure for the Financial Assistance Programme was $49.58 million, an increase of 1 per cent from $49.26 million in the prior fiscal year.
The highest items of client expenditure were rent, at 28 per cent; nursing home fees, 18 per cent; FutureCare insurance, 15 per cent; food allowances, 15 per cent; the Health Insurance Plan, 9 per cent; rest home fees, 9 per cent; and medication, 6 per cent.
The monthly average number of children covered by the Child Day Care Allowance in 2025-26 was 272, compared with 265 the year before.
The programme aims to help parents remain employed while ensuring their children have access to early childhood care.
The Short-Term Relief Benefit was introduced under the Financial Assistance (Short-Term Relief Benefit) Act 2024, providing eligible persons experiencing sudden and unforeseen financial hardship with temporary assistance of up to $1,500 per month, for a maximum of three months.
During the fiscal year, payments under the programme totalled $20,000, awarded to eight recipients.
Ms Furbert said: “We want every Bermudian who qualifies to know that this support exists and to be able to access it with ease.
“That is why, effective February 1, 2026, the department introduced a digital application form for the Short-Term Relief Benefit, enabling persons to apply online, while manual application forms remain available for those who are unable to access or complete the online application.”
The report is available online at www.gov.bm, and hard copies will be available at the ministry headquarters at Veritas Place in Hamilton, and at the Department of Financial Assistance, at Global House in Hamilton.
• To view the report, see Related Media
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