Spy cameras hidden in vehicles are to be rolled out later this year in a bid to catch benefit cheats in the act of defrauding the system, The Mail on Sunday can reveal.

Video surveillance cameras will be concealed both inside and outside vehicles to secretly film fraudsters and obtain damning footage which can later be used as evidence in court to prove they have been on the fiddle.

The strategy is expected to become operational in September (2026) with vehicles equipped with the high-tech cameras which can capture images after dark and will be deployed outside homes and places of work following tip-offs and intelligence.

It is part of the Department for Work and Pensions 'live surveillance strategy' and is reminiscent of the TV detector vans which roamed Britain's neighbourhoods using electronic equipment to locate homes watching TV without a licence.

But DWP anti-fraud staff will be able to conduct stakeouts on suspects while controlling the vehicle cameras from remote locations with live images being fed to investigators.

The crackdown has been made possible by powers in the Public Authorities (Fraud Error and Recovery) Act 2025 which is aimed at saving £1.5billion from the benefits bill by 2030 by catching fraudsters and reducing payments made in error.

Investigators will be able to proactively go after fraudsters using the concealed in-vehicle devices instead of hunting for incriminating CCTV footage which may or may not be available.

The new tactic emerged in a £2.4 million DWP tender in which the government department says it requires live surveillance kit on a three to five-year-long contract which includes hardware and software able to covertly film video, encrypt live streaming images and store huge volumes of footage.

Potential suppliers of the spying equipment had until last Monday (May 18) to submit their bids. The contract date is from September 1st, 2026, to September 1st, 2029, with a possible extension to 2031.

The tender notice tells potential suppliers: 'Vehicle-based video storage and recording equipment' is needed which 'allows video footage to be captured and securely stored on discreet equipment within a vehicle,' explaining, 'it continuously records during deployments and retains high-quality video evidence.'

It adds: 'Covert vehicle cameras integrated discreetly inside and outside the vehicles during surveillance operations,' are needed which are 'designed to remain hidden from public view while providing clear, reliable footage, with the ability to provide high quality footage in all weather conditions and during hours of darkness.'

Under the Act the DWP can already electronically search bank accounts and force banks to reveal private financial information and grab money back from accounts without a court order if it was obtained by fraud or by DWP payment errors.

Shadow Work and Pensions Secretary Helen Whately welcomed the crackdown.

She said: 'Billions of pounds of taxpayers' money is lost to benefit fraud each year. People are abusing and gaming our welfare state and this undermines public trust in it.

'I welcome any action to crack down on benefit fraud. The government promised a crackdown, but have been losing the battle so far.

'The public should not wait with bated breath. After almost two years in office Labour is failing on welfare reform, failing on welfare savings and so far they've been failing to stop welfare fraud too.'

Speaking after the Act was made law in December Andrew Western, Minister for Transformation in the DWP, said: 'The powers granted through the Bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer.

'A benefits system people can trust is essential for claimants and taxpayers alike - through this Bill that's exactly what we'll deliver.'

Shimeon Lee, policy analyst at the TaxPayers' Alliance added: 'Hard-working taxpayers will welcome tougher action against benefit fraudsters who cheat the system.

'However, they will question the cost of this contract and be rightly concerned that new surveillance could become yet another example of excessive state intrusion into people's private lives

'The government should focus on robust enforcement against serious fraud while protecting the civil liberties of law-abiding citizens.'

Overpayments due to fraud and error in the benefits system cost the UK £9.9 billion from April 2025 to March 2026, according to the DWP.

Personal Independence Payments provide between £121.20 and £778.40 every four weeks to more than 3.9million claimants across England and Wales.

Last week Helen Green, 49, from Shrewsbury, who claimed she suffered from rheumatoid arthritis in every joint, was jailed for seven months after claiming £25,000 in benefits while running 10k races and attending fitness classes.

She claimed the money in personal independence payments (PIP) between January 2020 and March 2023 but employed a personal trainer, took part in Zumba and spin classes at a gym and ran several 10k races, Shrewsbury Crown Court was told.

The court was shown CCTV of Green taking part in the gym classes and a photo of her running in the Market Drayton 10k race.

In March Catherine Wieland, 33, received a 28-week sentence suspended for 18 months for claiming £23,000 in personal independence payments for being housebound while she was holidaying in Cancun, Mexico, and posting pictures of herself on social media zip lining.

She told the DWP her crippling anxiety left her housebound and that she could not wash herself, could not cook and suffered from a lack of appetite. But Lewes Crown Court heard the DWP was tipped off about Wieland from Goring-by-Sea, West Sussex, and they caught her on CCTV lifting shopping bags at a shopping centre.

A DWP spokesperson said: 'Hardworking and honest Brits would absolutely expect us to use all the tools available to tackle benefit fraud.

'It is not a victimless crime. It costs taxpayers billions every year and takes money away from people and services that need it most.

'Our investigators are only ever authorised to use surveillance where it's necessary and proportionate, with every operation subject to strict oversight and codes of practice.'

The in-car video surveillance crack down has invited criticism from civil liberties groups such as the Open Rights Group (ORG).

'Welfare surveillance further stigmatises people who receive benefits, many of whom already face discrimination and negative stereotyping,' said Mariano delli Santi, ORG's policy manager.