FRAUD officers targeted take-aways in Burnley to bag dole fiddlers feeding on benefit hand-outs while working.

Benefit agency chiefs say the successful swoop was part of a campaign in which they uncovered £3.6 million of benefit cheating in the town over the past year.

The campaign resulted in investigators uncovering 1,338 cases of fraud - with 44 of the worst being referred for criminal action in the courts.

Agency chiefs were also claiming spectacular success in the Burnley and Blackburn pilot scheme in which people were asked to snoop on their neighbours to trap benefit cheats.

The three-month campaign resulted in more than 670 people ringing in to a special benefits hotline to anonymously "grass up" their neighbours.

The calls led to £153,000 fraud being uncovered, with another £48,500 saved after other householders admitting receiving a further £50,000 in overpayments.

"We found that by far and away most of the calls were genuine and resulted in our officers tracking down cases of cheating," said a Benefits Agency spokesman.

The Burnley and Blackburn pilot has been so successful, Government ministers announced yesterday it will be extended throughout the c country to save an estimated £3 billion in false claims. Burnley council is also turning the heat on housing and council tax cheats.

The Government, which shells out £22 million a year in the two subsidies, has told the council to track down £280,000 worth of false claims this year - a figure town hall investigators are confident they will reach.

And there will be a cash bonus from the Government

if the council teams exceed the fraud figure - the town receiving 25 per cent of any money over the target.

But although the council will track down many cheats, it is unlikely any will be hauled before the courts.

A council spokesman said: "Many cases involve people not really understanding the system. It is only were we to uncover organised cheating that we would take legal action."

He confirmed the town hall too received anonymous calls "shopping" local cheats.

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