Nearly one-in-six Greek disability allowances are to be cancelled after thousands of payments were found to be based on false claims - including drivers registered as being legally blind and bogus cases of leprosy.

Deputy Health Minister Markos Bolaris said that 36,000 allowances will be stopped, saving the government 110 million euros a year. The action was taken on the results of a compulsory survey for beneficiaries.

Mr Bolaris said the government expected to save a further 120 million euros in annual payments following a more detailed benefit-fraud inquiry.

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