A forthcoming report by the UK’s Covid Counter Fraud Commissioner Tom Hayhoe is expected to reveal that almost £11 billion of taxpayer money was lost to fraud and error in Covid-19 support programmes. The findings, to be shared with MPs this week, point to major failures in oversight during the previous Conservative government’s rapid rollout of pandemic relief measures.
Fraudsters exploited a “golden opportunity”
According to details first reported by the Sunday Mirror and confirmed to the BBC, Mr Hayhoe will say that fraudsters seized a “golden opportunity” as ministers rushed to launch emergency support schemes with minimal eligibility checks.
Among the programmes under scrutiny are the furlough wage subsidy scheme, ‘bounce-back’ loans, the Eat Out to Help Out initiative and one-off business grants. These measures were widely credited with protecting the UK economy during lockdowns but have long attracted criticism for weak controls.
The final report, due on Tuesday, will highlight that a lack of anti-fraud measures meant the government effectively accepted a high level of fraud risk without any clear strategy for managing it.
New commissioner tasked with recovering billions
Mr Hayhoe, appointed by Chancellor Rachel Reeves, has been charged with recovering public funds lost to fraud and underperforming pandemic contracts. Drawing on his procurement experience as former chair of an NHS trust, he has already uncovered major financial losses linked to PPE purchasing.
Previous reports found that defective or undelivered PPE contracts cost the taxpayer £1.4 billion, of which only £400 million has so far been recouped, according to the Chancellor’s speech at the Labour Party conference.
The National Crime Agency is also investigating potential criminal offences connected to PPE procurement.
Government launches voluntary repayment scheme
In September, the UK government introduced a voluntary repayment scheme, allowing individuals and businesses to return pandemic support funds with “no questions asked” until the end of December. Officials hope this approach will encourage partial recovery of the money lost through unintentional error or minor misuse.
However, large-scale fraud cases are expected to remain active for years, with cross-agency efforts continuing across the UK.
A costly legacy of the pandemic
While the Covid-era schemes were pivotal in preventing economic collapse, the new report underscores the financial consequences of speed over scrutiny. Rushed rollout, minimal verification and limited oversight created vulnerabilities that criminal groups and opportunists were quick to exploit.
The findings will likely intensify political debate over the management of pandemic funds and the responsibility of those in leadership at the time, including former Prime Minister Boris Johnson’s administration.