Benefit Fraudsters "Confused"

Fraudulent benefit claims are estimated to cost the taxpayer up to £4 billion a year. But the survey, carried out by the Policy Studies Institute, suggests that very few of those who make wrongful claims are organised criminals or regular cheats.

It says most fraud is committed by people who are confused by the complex rules and regulations or who are desperate enough to risk doing occasional casual work for cash.

Few realise they are doing anything wrong or, if they do, they consider themselves to be no more than "bending the rules". They do not associate what they are doing with high profile prosecutions for organised benefits frauds.

"The threat of prosecution is a poor deterrent because few people believe they are doing wrong or think they will be caught," said one of the report's authors, Tim Newburn.

"A combination of clearer rules, improved detection and the use of new sanctions such as formal cautions and warnings may be a more effective way to combat fraud. Prosecution policy should target the persistent and premeditated offender."