CRIMINALS will have their cash seized under a pilot scheme to be run in Kirklees.
It will be one of the first areas to trial the project.
Offenders found with £1,000 or more face having their cash taken by the police using a court order under the new proposals.
Home Secretary Charles Clarke will consult on whether the cash threshold under the Proceeds of Crime Act should be lowered from £5,000 to £1,000.
The move would allow police and other law enforcement agencies to target small-time criminals as well as the "Mr Bigs" of the criminal world.
The move is part of the Government's Respect agenda - aimed at tackling crime and anti-social behaviour to make communities safer.
Mr Clarke said: "Reducing the threshold so officers can seize cash stashes of at least £1,000 will allow the police to target local drug dealers and other small-time criminals whose activities destroy lives and blight communities.
"Hard cash remains the currency of choice for criminals - bundles of notes totalling around £1m are being seized each week.
"Much of the money we are confiscating from the criminals is being used to fund the fight against crime and to help support victims and crime reduction projects across the country.
"This forms a key part of our Respect agenda and our sustained effort to ensure criminals can no longer ride roughshod over the law and the values of the decent law-abiding majority by openly flouting their ill-gotten gains."
The 60 local authority areas where the Government has focused activity have also seen a sharp increase in take-up of powers to tackle anti-social behaviour.
Between October 2003 and September 2005 there were:
* 6,456 acceptable behaviour contracts signed
* 1,931 housing injunctions banning people from anti-social behaviour in social housing
* 966 parenting contracts and parenting orders.