Thousands paying back welfare debts

The prospect of being charged interest has seen 28,000 former Centrelink clients paying back debts they owe.

Welfare recipients with unpaid court fines will be targeted in the federal budget. Source: AAP

Thousands of people with outstanding welfare debts have begun paying back the money they owe after the Turnbull government said it would start charging interest.

Human Services Minister Michael Keenan said around half of the 28,000 former Centrelink clients who have begun paying back money repaid their entire debt in one lump sum, including several individuals who owed more than $20,000 each.

The Department of Human Services announced in April that it was sending letters to about 170,000 former clients who collectively owe taxpayers a staggering $905 million.