Businesses and individuals who have mistakenly received Covid-related funds are being urged to repay the money promptly to clear their conscience or face potential repercussions.
The Treasury’s counter-fraud commissioner, Tom Hayhoe, has introduced a new voluntary repayment initiative, encouraging individuals to rectify any erroneous claims without facing further scrutiny. However, there is a December deadline for individuals to return any funds they were not entitled to, under a “no questions asked” policy.
In an article for The Mirror, Hayhoe emphasized the limited time frame for the offer, cautioning that new investigative measures are forthcoming. Failure to comply could result in severe consequences, including business closures, director disqualifications, legal proceedings, and imprisonment for serious offenders.
Hayhoe reiterated the importance of returning the Covid-era funds, emphasizing that the money rightfully belongs to communities, the NHS, police, and armed forces. Those who fail to take advantage of the repayment scheme may face prosecution, disqualification, or imprisonment if they knowingly claimed taxpayer-funded assistance they were not entitled to.
The Treasury also announced the launch of a Covid fraud reporting website to enable the public to report suspected fraudulent activities. Eligible Covid-era schemes for voluntary repayments include furlough, bounce-back loans, support grants, and the Eat Out to Help Out scheme.
The furlough scheme, initiated in April 2020 by former Prime Minister Boris Johnson and then-Chancellor Rishi Sunak, supported 1.3 million employers nationwide with a total of £70 billion in taxpayer funds during the crisis.
Chancellor Rachel Reeves commissioned the counter-fraud commissioner to recover public funds lost due to fraud and mismanagement during the Covid crisis. The Treasury reported over £10 billion lost to fraudulent activities, flawed contracts, and wastage under the previous government, with £1.5 billion already recovered.
Earlier this year, Hayhoe conducted a review of £8.7 billion in Covid Personal Protective Equipment (PPE) expenditures, including gowns, masks, and visors, resulting in significant write-offs. Department of Health accounts revealed that £673 million worth of equipment was unusable, with an additional £750 million wasted on unused items.
Small businesses, severely impacted by the pandemic, struggled to adapt to the abrupt changes, leading to financial challenges and difficult decisions. The Covid Voluntary Repayment Scheme provides an opportunity for individuals to rectify erroneous claims and contribute back to essential services.
Hayhoe stressed the simplicity of the scheme, allowing individuals to settle their obligations without extensive investigations or public scrutiny. The voluntary repayment window will remain open until December 2025, after which stricter consequences may apply. The message is clear: repay now to clear your conscience or face harsher penalties in the future.