Drive to flush out benefit cheats

HI-TECH data-tracking techniques are to be deployed in a drive to clamp down on benefit and tax credit fraud costing the taxpayer £1.5 billion a year.

Some 200 additional inspectors are to be recruited to a new investigation service, which will see a mobile taskforce sent to high-fraud areas to check every claim, said welfare reform minister Lord Freud.

By sharing data across government offices and credit reference agencies, the new service aims to track the "muddy footprints" of professional cheats and their fraudulent activities.

Lord Freud warned that no wrongful claimant would be let off. Instant fines of 50 or more will be handed out for minor offences, but repeat fraudsters will face a three-year benefit ban under a "three-strikes-and-you're-out" rule. Investigators will also aim to seize more of the assets of those found guilty of benefit fraud.

Speaking ahead of tomorrow's launch of the strategy, Lord Freud said: "Fraud and error is costing the government and the taxpayer 5bn a year - this is unfair and unacceptable.

"We are reforming the system and stepping up our efforts to catch the benefit and tax cheats who are stealing money meant for the most vulnerable people in our society."