Covid Scheme Fraud Costs Taxpayers Almost £11 Billion, Most Losses Irretrievable

Taxpayer money lost to Covid scheme fraud and error totals nearly £11 billion, with much of it now considered beyond recovery. The Covid Counter Fraud Commissioner, Tom Hayhoe, has released a report detailing the extent of the losses, which he attributed to the "enormous outlays of public money" used to respond to the pandemic. Employment support schemes, including the furlough and help for the self-employed, suffered £5 billion in fraud, according to the report. Hayhoe stated that many organisations were unprepared to handle the enormous outlays of public money, which exposed them to the risk of fraud and error. He noted that the "outrage" at fraud, abuse, and error remains "undiminished." The report found that £1.8 billion had been recovered, but much of the shortfall is now beyond recovery. The report was commissioned by Chancellor Rachel Reeves, who asked Hayhoe to investigate the amount of public money lost to fraud given his experience in procurement as the former chair of an NHS trust. The £10.9 billion lost to fraud and error is close to what the government spends on the UK's justice system. Hayhoe's report highlighted the challenges faced by organisations in implementing support measures during the pandemic. Many of these measures were credited with propping up the economy throughout the lockdowns. However, the report noted that the rapid rollout of these schemes created opportunities for fraud and error. The report's findings have sparked concerns about the effectiveness of the government's response to the pandemic. Critics argue that the lack of preparation and oversight allowed fraudsters to take advantage of the system. However, others point out that the support measures were necessary to mitigate the economic impact of the pandemic. The current status of the recovered funds is unclear, but officials have indicated that efforts to recover the remaining shortfall will continue. The report's findings are expected to inform future policy decisions and reforms aimed at preventing similar losses in the future.