Cyprus audit reveals long-standing errors in social benefit payments

The Audit Office of the Republic of Cyprus has published a report identifying serious problems in the social benefit distribution system. The audit covered payments for 2022–2023, including Minimum Guaranteed Income, child benefits, support for single-parent families, and payments to low-income pensioners.

According to the report, in several cases, benefits were paid to individuals who were not eligible or had not passed necessary checks. For instance, a third-country national received over €231,000 over 14 years, despite expired residence permits and lack of employment.

In another case, a woman continued to receive child benefits for a child who had passed away—the overpayment amounted to over €19,000. Additionally, an EU citizen was paid €63,000 over seven years without providing documents confirming residency in Cyprus.

The audit also showed that approximately €780,000 is still paid annually to 83 people who previously received state aid, but whose status has not been reviewed ten years after the introduction of the new benefit system.

In total, €412 million was allocated to social benefits in 2022, and €410.7 million in 2023.

The Audit Office notes that the system needs serious changes: data verification must be improved, information sharing between government services established, and recipients' eligibility regularly reviewed. According to the auditors, social benefits should remain a temporary support rather than a replacement for employment.