Mr Darling acknowledged that the powers outlined in the bill were tough but he argued they were necessary in the light of the threat of organised fraud.

BBC: People queue in a benefits office

Opening the bill's second reading debate, Mr Darling told MPs the current economic turmoil owed much to regulatory failings.

BBC: Financial Services Bill

And former Chancellor Alistair Darling will give his thoughts on bank regulation to the Joint Committee on the Draft Financial Services Bill.

BBC: Viewing guide: The coming week's highlights in Parliament