Britain's first female Asian peer has been slammed for claiming all Muslims are on benefits and vote Labour.

Indian-origin crossbencher Baroness Flather made the comments while defending PM David Cameron's new Aussie campaign chief Lynton Crosby "who had allegedly said that chasing Muslim votes was a waste of Tory time'. Crosby is also said to have used the phrase 'f***ing Muslims' while on London Mayor Boris Johnson's staff, the Sun reports.

"I don't condone swearing, but Lynton is right. They are all on benefits and all vote Labour,' Flather, who has Indian roots, said.