The rise of the benefit cheat police

Hit squads of inspectors are to be sent to areas where problems with benefit cheats are rife, the chancellor George Osborne has said. Mr Osborne compared welfare cheats to muggers robbing taxpayers of their hard-earned money. He also warned that repeat offenders could have their benefits cut off for up to four years.

Benefit and tax credit fraud costs the taxpayer an estimated £1.5bn a year. The government is planning to reduce the annual welfare bill by a further £4bn, on top of an £11bn cut made in June. Details of how the savings are to be made are to come in next week's Spending Review.

The new anti-fraud drive will use hi-tech data-tracking techniques and another 200 inspectors are to be recruited to a new investigation service. Welfare reform minister Lord Freud said minor offenders would face instant £50 fines and offenders caught three times could face a three-year benefit ban. He also said investigators would seek to seize more assets from benefits cheats.