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Only about 2% of benefit fraud is identity fraud, costing around £50m/year. The other 98% stems from fraudsters lying about their circumstances, not about who they are. This makes your argument even more relevant - the £6b cost of the ID card scheme would prevent at most £50m/year of benefit fraud.
For much more on this, and other reasons why ID cards make no sense, see this paper:
While this was written by a politician (and a Conservative one at that!), it's very-researched and surprisingly non-political. Do read it, even if you would never dream of voting Conservative. At least some of the money we pay politicians is being spent on something useful!Andrew Watson, 14 years ago.