"Labour has shown it is incapable of getting a grip on a welfare system that is being exploited on an industrial scale," said Lee Anderson.
The political figure argued that the drop in convictions represents a disservice to working citizens who fund public utilities.
"At a time when taxpayers are being asked to work harder and pay more, it is outrageous that billions of pounds are being lost to fraud while the number of convictions has collapsed.
Every pound lost to fraud is one which cannot be spent on front-line public services, which means these fraudsters are literally stealing from their own friends and family," he said.
Shimeon Lee, a policy analyst at the TaxPayers' Alliance, stated that the decline from over 4,400 prosecutions in 2017 to just 385 last year would leave citizens "appalled to see ministers going soft and effectively decriminalising benefit fraud" while facing high tax burdens.
"With the welfare bill ballooning and hard-working Brits struggling under a record tax burden, benefit cheats deserve more than a slap on the wrist.
The new prime minister must immediately crack down on welfare fraudsters and recoup any money stolen from taxpayers," said Shimeon Lee.
The analyst noted that older demographics also contributed to the rising losses, with over-65s claiming £210 million fraudulently last year through concealed foreign properties and undisclosed jobs.
"This £210 million fraud explosion is a disgraceful betrayal of honest pensioners. Scammers are stealing from taxpayers and draining support from those who genuinely need it.
