Benefits cheats falsely claimed more than £200,000 in the first half of the current financial year.

But Treasury’s inspectors saved taxpayers a further £160,000 that would have been paid out if fraudulent claims had not been identified and the benefits stopped.

Treasury member Ralph Peake MHK said: ’Benefit fraud is not a soft or victimless crime.

’It takes away money which could otherwise be used to support those who genuinely need it. Treasury has a duty to protect the public purse and we will take appropriate action against those who seek to defraud the public purse.’

Between April and the end of September this year, eight individuals were prosecuted for benefit fraud worth between £2,000 and £13,000. Benefit overpayments totalled £202,460. Two of those prosecuted received prison sentences, while the others were either fined or ordered to carry out community service.

One-third of allegations related to people claiming single parent benefits whilst allegedly living with their partner. The second largest proportion (28%) of allegations related to undisclosed work.

Mr Peake added: ’The Treasury will continue to do everything in its power to identify and investigate instances of benefit fraud.’