A new enforcement team will pursue individuals who committed Covid-related fraud against the government, as announced by Rachel Reeves today. The Chancellor will establish a task force with enhanced authority to levy significant fines on those who engaged in fraudulent activities during the pandemic.
This unit will have the ability to penalize offenders for the full amount they owe on all Covid relief programs, including the Eat Out to Help Out initiative and bounce-back loans. Additionally, it will possess the power to prevent fraudulent individuals from serving as company directors and refer them for criminal prosecution.
Ms. Reeves criticized the Conservative party for allowing widespread fraud to occur, emphasizing the need to recover misspent funds. She stated, “We are still footing the bill for their mismanagement and favoritism… and we demand reimbursement. We will reclaim those funds and allocate them to essential services such as schools and law enforcement.”
The newly established team will operate as a trial program, supported by a budget of £15 million to ensure that those exploiting the system face repercussions. This initiative follows the directive for companies and individuals who wrongly received Covid funds to repay the money by December through a voluntary refund program. Failure to comply will result in compensation orders to recoup the funds.
According to the Treasury, over £10 billion was lost to fraud, inefficient contracts, and wasteful spending during the pandemic. To date, more than £1.5 billion has been recovered. Counter-fraud commissioner Tom Hayhoe has been appointed by the Chancellor to spearhead efforts in retrieving the misused funds.
Earlier this year, a report revealed that the government’s failure to assess the viability of PPE for up to two years led to a loss of £762 million for taxpayers. The procurement of excessive protective equipment resulted in stockpiles being stored in containers due to limited warehouse space. Delays in inspecting the surplus PPE, including gowns, masks, and visors, caused warranties to expire before the faulty equipment was identified.
