Covid Fraud and Error Cost Taxpayers Nearly £11bn, Reports Reveal
A forthcoming report estimates that Covid-related fraud and error have cost UK taxpayers about £10.9 billion (nearly £11 billion). The Covid Counter Fraud Commissioner, Tom Hayhoe, will present the findings to MPs, highlighting how fraudsters exploited the rapid rollout of pandemic support schemes.
The policies scrutinized include furlough wage subsidies, Bounce Back Loans, Eat Out to Help Out, and one-off grants, all introduced by the previous Conservative government. Due to the urgency of the Covid-19 response, these programs accepted a high risk of fraud, with limited eligibility checks during implementation.
The final report is scheduled for presentation to MPs on Tuesday, with key details first published by the Sunday Mirror. In response, the government launched a voluntary repayment scheme in September, allowing those who received pandemic scheme money to repay it without questions until the end of December.
Tom Hayhoe, tasked by Chancellor Rachel Reeves to recover public money lost to fraud and underperforming contracts, previously chaired an NHS trust. Earlier reports also found that PPE procurement during the pandemic cost taxpayers about £1.4 billion for undelivered or unusable equipment, of which only approximately £400 million has been recovered.
Meanwhile, the National Crime Agency is conducting a separate investigation into possible criminal offences related to PPE procurement.
