Tories pledge action over benefit fraud

Shadow Work and Pensions Secretary Theresa May said current levels of fraud were "scandalous" and she would send out a "strong message" to offenders.

Under the Tory plans, claimants caught committing benefit fraud once would lose their out-of-work benefits for three months, a second offence would result in a six-month sanction, and a third offence would see the benefits withheld for up to three years.

The Tories said existing rules removing benefits for 13 weeks for those convicted of fraud twice were not robust enough. The new pledge would apply to jobseeker's allowance, incapacity benefit and income support – though vulnerable claimants such as parents would have payments reduced rather than cut off.

Insisting the party was not seeking to stigmatise those with a real need and who were working hard to get a job, Mrs May said: "We want to send out a strong message to people who fleece the taxpayer – you could lose your out-of-work benefits for three years. This is about fairness.

"While the whole country is tightening its belt it's scandalous that thousands are managing to defraud the taxpayer out of billions."

Yesterday's pledge sits alongside an existing commitment to take benefits away from people who can work but choose not to.

Work and Pensions Secretary Yvette Cooper, standing for Labour in the new Normanton, Pontefract and Castleford constituency, accused the Tories of "more smoke and mirrors".

"Fraud is now half the level it was 10 years ago, and much lower than the shocking levels we inherited from the Tories," she said. "But we're going further, clamping down on dodgy claims."

The Tories also renewed their criticism yesterday over the business rates revaluation which they said have left about 19,000 businesses in Yorkshire and the Humber facing annual increases of more than 20 per cent in their business rate bills over the next few years.

The Tories have called for the reassessment to be postponed because it could push some businesses over the edge given the pain of the

recession.