Public authorities will now benefit from data sharing with anti-fraud organisations, the inclusion of new provisions in the serious crime bill.
CIFAS, the UK's fraud prevention service welcomed the new legislation, claiming that it will significantly cut down money lost to fraud.
It claims that nearly £1 billion is already saved every year by sharing fraud-related data within the private sector. Extending the prevention power to the public sector will only increase the figure saved and benefit both sectors, said the organisation.
"This is very good news for all those in fraud prevention and equally bad news for fraudsters," said CIFAS chief executive Peter Hurst.
He explained that it is a well-known fact that the same fraudsters steal from both the private and public sectors.
The Home Office claims that identity fraud is a growing crime, affecting over 100,000 people every year and costing the country £1.3 billion annually.
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