UK COVID Fraud Report Reveals £10.9bn Losses

A report by the UK's Covid counter fraud commissioner has revealed that fraud and errors in government support programmes during the coronavirus pandemic cost taxpayers £10.9 billion. The findings, detailed in the final review by Tom Hayhoe, highlight vulnerabilities in schemes rolled out rapidly to aid businesses and workers amid nationwide lockdowns.

The losses stemmed primarily from initiatives introduced by the government under then-Prime Minister Boris Johnson, including bounce back loans, furlough wage subsidies, small business grants and the Eat Out to Help Out programme. These measures, credited with bolstering the economy during the crisis, were designed and delivered at speed by individual departments with limited coordination. Hayhoe's report noted that many public bodies lacked prior experience handling payments on such a scale, leading to inconsistent counter-fraud measures. Key shortcomings included weak accountability, poor data quality and inadequate contracting processes, which allowed fraud risks to proliferate without sufficient mitigation plans.

"Organisations told me they lacked the capability, capacity and legal powers to deal with Covid-19 fraud yet have...