Swedish investigators propose penalty fees for those who mishandle unemployment benefits. The government wants to tighten work against welfare fraud. A new investigation presents partial results in the labor market area.
Hard-working people must trust their money goes to its intended purposes, said Social Insurance Minister Anna Tenje at a press conference. She represents the Moderate Party.
Under the proposal, those who provide incorrect information to employment services could face sanction fees. This applies to agencies like the Swedish Public Employment Service and Social Insurance Agency.
The penalty would target wrong information about unemployment benefits, wage subsidies, or establishment support. Authorities would decide the sanctions, proposed at 25% of incorrectly paid amounts.
The maximum penalty would reach 73,500 Swedish kronor (approximately $7,000). This will change behaviors and reduce incorrect payments over time, said investigator Mikael Westberg.
Westberg noted that 55 billion kronor gets paid annually in labor market and unemployment insurance areas. About 2.6 billion kronor of these payments are estimated incorrect.
The proposal suggests implementation starting July 2027. This spring saw the first part of the welfare fraud investigation. It proposed similar 25% penalties within social insurance.
The complete investigation will be presented next March. This crackdown reflects growing concern about proper use of public funds in Sweden's welfare system. The government appears determined to show taxpayers their money is handled responsibly.
Sweden maintains one of Europe's most comprehensive welfare systems, funded through high taxes. These proposed measures aim to balance generous benefits with stricter accountability.