Japan eyes tougher punishment on welfare money cheating

The Japanese cabinet on Tuesday approved a welfare-related public assistance law with a focus on tougher punishment on illegal receiving welfare money, according to local media.

Under the revised law, cheating on welfare money will be fined up to 1 million yen (about 10,137 U.S. dollars), up from current 300,000 (about 3,041 dollars). Violators will also face up to 40 percent interest on money to be refunded, said Japan's Kyodo News.

The bill, which is expected to be enacted next July, also urges those on welfare to use cheap generic drugs if their doctors approve it, reported Kyodo.

Meanwhile, the cabinet also approved another bill that aims at creating a "second safety net" to supplement the welfare system by urging local government to deal with needy people on a case-by- case basis.

A permanent rent subsidy system will be introduced under the new legislation that is to be enforced in April 2015 to support those who lose their houses after losing jobs.

The government expected to enact the two welfare-related bills during an extraordinary Diet session from Tuesday

More than 2.15 million people were on welfare in Japan as of July this year.