A fresh team will be formed to track down individuals involved in Covid-related fraud that defrauded public funds, as announced by Rachel Reeves. The Chancellor is set to establish an investigative unit with the authority to levy substantial fines on those who exploited government aid programs during the pandemic, such as the Eat Out to Help Out and bounce-back loans. This team will also have the power to prevent fraudulent claimants from holding directorial positions and refer them for potential criminal prosecution.
Reeves criticized the Conservative party for allowing widespread fraud, stating, “We are still paying the price for their mismanagement… and we demand reimbursement. We will recover these funds and allocate them to essential sectors like education, law enforcement, and public services.”
The initiative, initially funded with £15 million, will operate as a trial program to ensure accountability for those who manipulated the system. Following a voluntary repayment scheme deadline in December for entities and individuals who received Covid funds erroneously, compensation orders will be enforced if repayment is not made.
According to the Treasury, over £10 billion was lost to fraud, flawed agreements, and inefficiencies during the pandemic. To date, more than £1.5 billion has been reclaimed. Counter-fraud commissioner Tom Hayhoe has been appointed by the Chancellor to spearhead the recovery efforts. Earlier this year, it was revealed that a lack of due diligence on Personal Protective Equipment (PPE) led to a £762 million loss for taxpayers, as surplus PPE remained unchecked for up to two years due to storage constraints.
The Conservative government’s procurement of excessive PPE stock that went unchecked resulted in expired warranties for essential medical gear, including gowns, masks, and visors, rendering them unusable when discovered.
