Local councils are to get the power to seize the assets of minor offenders under government moves next week.
The Proceeds of Crime Act - brought in to target organised criminals could be used against housing benefit fraudsters and other less serious offenders.
The Police Federation has expressed concern that "intrusive powers" are to be given to people who are not police.
But the Home Office said seizing "ill-gotten gains" was a key part of the fight against all kinds of crime.
The move, which is being pushed through next week by Home Secretary Alan Johnson, is set out in a Statutory Instrument, which means it will not be debated by MPs.
Paul McKeever, of the Police Federation, told The Times: "The Proceeds of Crime Act is a very powerful tool in the hands of the police and police-related agencies and it shouldn't be treated lightly."
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