New Regulation on NAV Leads to Fear of Fraud

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NAV

The Norwegian Labour and Welfare Administration (Norwegian: NAV, originally an abbreviation of "Ny arbeids- og velferdsforvaltning") is the current Norwegian public welfare agency, which consists of the state Labour and Welfare Service as well as municipal welfare agencies. It is responsible for a third of the state budget of Norway, administering programs such as unemployment benefits, pensions, child benefits and more. The agency has 19,000 employees (14,000 in the state service). Its head is the Labour and Welfare Director, currently Joakim Lystad, who is appointed by the government.

Every year, the Norwegian Labour and Welfare Service (NAV) makes around 50.000 incorrect payments as a result of major miscalculation and thereby loses tens of millions NOK. Aftenposten writes the average cost of each case is 3000 NOK. To reduce the costs of collection, a new regulation lets NAV not to collect small sums under 3440 NOK. Previously, the limit for recollection was 430 NOK.

Talking to the newspaper, Progress Party MP Laila Marie Reiertsen fears the new law can serve as a loophole in the social security system.

- This can lead to more abuse. I also believe we are sending the wrong message with this law by saying that we accept incorrect payments, she said.

Labour and Social Affairs Committee passed the proposal in June with Reiertsens support, according to NTB. Now she will discuss the matter again with the party before the Parliament takes the final decision this fall.