Covid-era Support Programmes Cost Taxpayers Nearly £11bn Due to Fraud and Error
Covid-era support programmes cost taxpayers nearly £11bn due to fraud and error, according to findings to be shared with MPs this week by Covid Counter Fraud Commissioner Tom Hayhoe. Hayhoe says fraudsters exploited a "golden opportunity" amid rushed rollouts of policies, including furlough wage subsidies, Bounce Back Loans, Eat Out to Help Out, and one-off grants introduced by the previous Conservative government.
The rapid implementation of these schemes with limited eligibility checks and weak anti-fraud controls contributed to the high risk of fraud. Final findings are due to be presented to MPs on Tuesday, with some details first published by the Sunday Mirror.
In September, a voluntary repayment scheme was launched to allow recipients to return pandemic money without questions until the end of December. Hayhoe was tasked by Chancellor Rachel Reeves to recover public funds lost through fraud and underperforming contracts, using his procurement expertise gained as a former NHS trust chair.
Earlier reports highlighted that PPE contracts cost taxpayers £1.4bn for undelivered or unusable gowns, masks, and gloves, with only £182m recovered so far. The National Crime Agency is investigating possible criminal offences related to PPE procurement.
