BENEFITS bosses are to crack down on unscrupulous employers exploiting illegal labour in the fresh food processing industry.

The Northern Echo has learnt that a series of raids are being planned in the North-East aimed at targeting the so-called "black economy" in fresh food picking and packing.

Department of Work and Pension (DWP) chiefs estimate that hundreds of people in the region, including refugees and asylum seekers, are being employed illegally while also claiming benefit.

The department is focusing on the North-East as part of Operation Gangmaster, an investigation into the use of illegal and exploited labour in the food business.

So far, the national operation, which also involves officials from immigration, Customs and Excise and the Health and Safety Executive, has found almost a thousand benefits claimants working illegally and has recovered £380,000 in fraudulently claimed benefit.

Targets include those employed in the agricultural sector, often as cheap or casual labour. The fish processing industry is another sector that has already been identified.

The North-East is thought to be a particular area of concern, with many immigrants entering the region through ports such as Teesport, near Middlesbrough, and North Shields, North Tyneside.

Officials fear that some are being signed up as illegal labour in order to keep costs down by gangmasters responsible for recruiting workers and checking their status.

Andy Collins, a spokesman for the Department of Work and Pensions in the North-East, said: "Our message to the illegal bosses is that we are on to them and we will be visiting them shortly.

"Some operations are being planned but we cannot say where they are and when they might happen.

"There is no single piece of legislation in this area, but we can prosecute employers for not keeping proper records or if they have knowingly employed someone committing benefit fraud.

"They can also be prosecuted for tax fiddles, health and safety breaches and for not paying the national minimum wage."

Mr Collins said workers from other European Union countries were entitled to work in the UK under the Treaty of Rome and were employed legally in the food processing and packing industry.

He said: "The problem is that there are some gangmasters who use immigrants who have no right to work in this country and exploit them in order to undercut legitimate suppliers of labour."

A Home Office spokeswoman said: "We are aware of this black economy which is why we have a policy of properly legal migration into the country.

"We are working closely with the police and relevant agencies, such as the DWP, to crack down on unscrupulous employers abusing the system in a dangerous and clandestine manner."