Taxpayer Losses from Covid Fraud and Errors Estimated at £10.9 Billion

A forthcoming report is set to reveal that nearly £11 billion has been lost to fraud and errors related to Covid-19 support initiatives, impacting taxpayers significantly.

According to insights from Covid Counter Fraud Commissioner Tom Hayhoe, fraudsters seized a “golden opportunity” during the pandemic crisis, which he will detail in his presentation to Members of Parliament this week.

The financial aid measures introduced by the former Conservative administration encompassed various programs, such as furlough wage support, ‘bounce-back’ loans, the Eat Out to Help Out initiative, and one-time grants.

While these policies were instrumental in stabilizing the economy amid lockdowns, concerns have emerged regarding the rapid implementation of these financial aids and insufficient eligibility verification, which are believed to have facilitated extensive fraudulent activities.

Mr. Hayhoe is poised to disclose the full extent of financial malpractice linked to Covid-19 when he submits his comprehensive report to MPs on Tuesday.

The report is anticipated to underscore the absence of anti-fraud measures in the hastily established Covid schemes initiated during Boris Johnson’s tenure, attributing the staggering financial losses to these oversights.

It will highlight that the expedited deployment of these programs resulted in a high susceptibility to fraud, with inadequate strategies for risk management and mitigation.

Key elements of the report were initially revealed by the Sunday Mirror.

In September, the government introduced a voluntary repayment program allowing individuals and businesses to return funds received from pandemic-related schemes without scrutiny until the end of December.

Chancellor Rachel Reeves has enlisted Mr. Hayhoe, leveraging his procurement expertise from his prior role as an NHS trust chair, to aid in recovering public funds lost to fraudulent activities and ineffective contracts.

Previous investigations led by him uncovered that the PPE contracts established during the pandemic cost taxpayers £1.4 billion due to unfulfilled agreements and unusable protective gear.

So far, only a mere £182 million has been recouped by HM Treasury from this sum.

Additionally, the National Crime Agency is conducting its investigation into potential criminal activities related to the procurement of PPE.