Suspected Covid fraudsters and individuals who wrongly claimed taxpayer-funded support have less than 48 hours to repay the money before facing tougher penalties, the Treasury has warned.
The voluntary repayment window, launched in September, closes shortly before midnight on December 31. It covers schemes including furlough, bounce-back loans, business support grants and Eat Out to Help Out, which was introduced under former prime minister Rishi Sunak.
Those who fail to comply could be hit with fines of up to 100% of the amount owed, plus interest and penalties. In the most serious cases, where fraud or deliberate abuse is suspected, claimants face criminal action and possible imprisonment. Chancellor Rachel Reeves said: "The message is clear – if you wrongly claimed, put it right now." She added that the money belonged to local communities and essential public services, and that those failing to come forward would face the consequences.
Counter-fraud commissioner Tom Hayhoe urged people to use the voluntary window to "wipe the slate clean and move on". He warned that new investigatory powers were coming, businesses could be shut down, people could be banned from running companies, and thousands could face court. "Pay now, clear your conscience, or face the consequences," he said.
The government has also set up a Covid fraud reporting hotline, which has received 300 allegations totalling £35 million. A new fraud team will begin work in the New Year. Hayhoe's final report earlier this month estimated that £10.9 billion was lost to the taxpayer during the pandemic, with £1.8 billion clawed back but much of the shortfall now beyond recovery. He said the then Tory government "paid too little attention to the risk of fraud" while containing the virus.
