A report has revealed that Covid-19 support programmes cost taxpayers nearly £11bn through fraud and error with much of it beyond recovery”.
The report found that many schemes, including Eat Out To Help Out and Bounce Back Loans, were rolled out quickly with significant risks
The counter-fraud and error measures during the pandemic under the Conservative Government were accused of being ‘so lax they may as well have left the door wide open’
Weak accountability, bad quality data and poor contracting were identified as the primary causes of the £10.9 billion pound losses – which were enough to fund daily free school meals for the UK’s 2.7 million eligible children for eight years.
Chancellor, Rachel Reeves said:
Leaving the front door wide open to fraud has cost the British taxpayer £10.9 billion — money that should have been funding our public services, supporting families, and strengthening our economy.
We have started returning this money to the British people and we will leave no stone unturned in rooting out the fraudsters who profited from pandemic negligence.
The report highlights that counter fraud controls were ‘inadequate’ and only improved later in the pandemic. Hayhoe makes further recommendations to ensure the country is prepared for further crises that need an economic response from government – emphasising that future preparation and robust controls will provide the best value for money for taxpayers.
