Jobless drug addicts who lie to get benefits could face jail in welfare blitz

And unemployed people who take drugs will be banned from receiving dole money and switched to a new Treatment Allowance - a category introduced solely for drug-takers in a bid to shame them into giving up their addiction.

The new proposals have been drawn up by Work and Pensions Secretary James Purnell as part of the biggest-ever crackdown on welfare abuse.

Crackdown: Unemployed drug addicts will be banned from receiving dole money in a bid to shame them into quitting their habit

The proposals are also seen as part of a campaign by ambitious 'arch Blairite' Mr Purnell to establish his credentials as a possible successor to Gordon Brown.

Some of the most controversial aspects of his plans concern the rising number of drug addicts claiming benefits.

Under the Green Paper published by Mr Purnell tomorrow, drug-takers will be forced to tell welfare chiefs they are addicts and will be stripped of State handouts if they refuse to agree to be treated.

If they are suspected of lying to the benefits authorities, they could be forced to take a drugs test and made to repay any illegally obtained benefits. Police may be given the power to prosecute them for fraud.

In addition, Mr Purnell is considering introducing a new benefit, his so-called Treatment Allowance, for unemployed drug-takers.

At present, they receive the same benefit as others who are jobless as a result of illness but Mr Purnell believes drug addicts should be placed in a separate category to emphasise the importance of being treated and clearly identify why they are out of work.

Addicts would revert to the usual dole payments only when they prove they are drug-free.

Private companies may also be drafted in, earning lucrative bonuses for getting people off benefits and into work.

Mr Purnell rejects Left-wing claims that the proposals are too harsh and could 'stigmatise' unemployed drug addicts.

His welfare Green Paper states: 'We are considering the case for changing benefit rules to enable us to require applicants to declare whether they use heroin or crack cocaine, and bring in sanctions, including recovering overpayments and investigations, against those who mislead.

'It could include information-sharing with the police.

'Making declaring a drug problem and taking steps to address it a condition of benefits would send out a clear signal: drug misuse is a serious cause of worklessness, and individuals have a responsibility to declare it and take steps to overcome it.'

Mr Purnell told The Mail on Sunday: 'My message to drug addicts is clear - "Look to the future, not your next fix."

'Drug addicts are a perfect example of what many people understandably see as injustice in the welfare system.

'It's unfair to the hard-working taxpayer and it's morally wrong for the State to sit back and let people waste their lives.

'The welfare state shouldn't be helping people to harm themselves. Support is only offered if it's matched by a personal commitment to get clean.'

An estimated one in 15 of all those on benefits are drug users, compared with just one in 100 in the wider population.

The proposals were drawn up for Mr Purnell by investment banker David Freud, the great-grandson of Sigmund Freud.

Mr Freud was commissioned by Tony Blair to lead a similar welfare shake-up three years ago, but it was blocked by Mr Brown, who was then Chancellor.

At the time he presented his proposals, Mr Freud is said to have been involved in an angry confrontation with Mr Brown.

However, after Conservative leader David Cameron last year gave his backing to Mr Freud's radical welfare plans, Mr Brown performed a dramatic U-turn on his support for the ideas.