Individuals suspected of wrongly claiming taxpayer cash through Covid-19 support schemes have been given a final 48-hour ultimatum to repay the money or face severe financial penalties and potential criminal prosecution.
Voluntary Window Slams Shut on New Year's Eve
The government's voluntary repayment initiative, which was launched in September, will close shortly before midnight on December 31, 2025. The scheme was designed to allow people and businesses to return financial support they either did not need or were not entitled to claim during the height of the pandemic.
It covers a range of flagship programmes rushed into operation as the virus spread, including:
- The Coronavirus Job Retention Scheme (furlough)
- Bounce Back Loans
- Various business support grants
- The Eat Out to Help Out dining discount scheme, created by former Conservative Chancellor and Prime Minister Rishi Sunak.
Stark Warning from Treasury and Fraud Commissioner
Chancellor Rachel Reeves issued a direct message to those who wrongly claimed: “The message is clear – if you wrongly claimed, put it right now. This money belongs to your local community – our NHS, our schools and our vital public services... Those who took tax-payer-funded help they weren’t entitled to and who fail to come forward will face the consequences.”
The Treasury has warned that those who do not voluntarily repay face being hit with 100% fines on top of the original sum owed, plus interest and other penalties. In the most serious cases of suspected deliberate fraud, claimants risk criminal action and a potential prison sentence.
Counter-fraud commissioner Tom Hayhoe, who urged people in September to use the window to "wipe the slate clean and move on," reiterated the high stakes. He had previously cautioned that businesses could be shut down, individuals banned from running companies, and thousands could face court, with the worst offenders sent to prison.
Billions Lost and a New Fraud Team
The push for repayments follows a damning final report from Mr Hayhoe earlier this month, which found an eye-watering £10.9 billion was lost to the taxpayer through fraud and error during the pandemic. While approximately £1.8 billion has been clawed back, the report concluded that "much of the shortfall is now beyond recovery."
However, Mr Hayhoe stated that work should continue where recovering funds is viable. He criticised the then Tory government for paying "too little attention to the risk of fraud" in its rush to support the economy.
A dedicated Covid fraud reporting hotline has already received 300 allegations totalling £35 million. A new specialist fraud investigation team is set to begin work in the New Year to probe these claims, applying new investigatory powers to pursue those who did not come forward voluntarily.
