Suspected individuals involved in Covid-related fraud and those who improperly received financial aid from taxpayers are facing a 48-hour deadline to repay the funds or risk harsher penalties.
The voluntary repayment opportunity for funds acquired through pandemic relief schemes will close just before midnight on December 31. Launched in September, this initiative allows recipients to return financial assistance they either did not require or were not eligible for during the pandemic’s peak.
The schemes in question include furlough, bounce-back loans, business support grants, and the Eat Out to Help Out program initiated by former Prime Minister Rishi Sunak. Failure to comply with the repayment directive may result in hefty fines up to 100%, along with potential interest charges and penalties. In severe instances of suspected fraud or intentional misuse, individuals may face criminal prosecution and possible imprisonment.
Chancellor Rachel Reeves emphasized the importance of rectifying any wrongful claims, stating that the funds rightfully belong to local communities, supporting essential services like the NHS and schools. Failure to come forward and repay the funds will result in severe consequences.
In September, Counter-fraud commissioner Tom Hayhoe encouraged individuals to utilize the voluntary repayment window to rectify any wrongdoings and avoid future repercussions. He cautioned that failing to take action could lead to investigations, business closures, director disqualifications, legal proceedings, and imprisonment for the most egregious offenders.
The government has established a Covid fraud reporting hotline, receiving 300 allegations amounting to £35 million. A new fraud investigation team will commence operations in the New Year to address these claims.
Mr. Hayhoe’s recent findings revealed that £10.9 billion was lost to fraudulent activities during the pandemic, with only £1.8 billion recovered thus far. While some losses are irrecoverable, efforts to reclaim misappropriated funds deemed feasible will continue.
Mr. Hayhoe criticized the previous government for not adequately addressing the fraud risk during the pandemic crisis, leading to substantial financial losses.