Firms and individuals who inaccurately received financial aid during the Covid pandemic are being strongly advised to repay the funds promptly to clear their conscience or face potential consequences.
The Treasury’s counter-fraud commissioner, Tom Hayhoe, is promoting a new voluntary repayment program, encouraging people to rectify any erroneous claims and move forward without repercussions. However, a December deadline has been set for individuals to return any funds they were not entitled to or did not require, under a “no questions asked” policy.
In an article for The Mirror, Hayhoe emphasized the limited duration of the offer, cautioning that new investigative measures are forthcoming. Businesses risk closure, individuals may be disqualified from managing companies, and legal actions, including imprisonment, could be pursued against the most severe violators.
Hayhoe reiterated the importance of repaying Covid-related funds, stressing that the money should support communities, the NHS, police, and armed forces. Failure to participate in the repayment scheme could result in prosecution, disqualification, or imprisonment for those who knowingly claimed taxpayer-funded assistance improperly.
Additionally, the Treasury announced the launch of a Covid fraud reporting website to enable the public to report suspected fraudulent activities. Eligible Covid-era programs for voluntary repayments encompass schemes such as furlough, bounce-back loans, support grants, and the Eat Out to Help Out initiative.
The furlough scheme, initiated in April 2020 by former Prime Minister Boris Johnson and then-Chancellor Rishi Sunak, supported 1.3 million employers nationwide with a total disbursement of £70 billion in taxpayer funds during the crisis.
Last year, Chancellor Rachel Reeves tasked the counter-fraud commissioner with recovering public funds lost due to fraud and mismanagement amid the Covid emergency. According to Treasury data, over £10 billion was lost to fraud, flawed contracts, and wastage during the pandemic under the Conservative government, with only £1.5 billion recovered.
Hayhoe’s review earlier this year revealed that £8.7 billion worth of Covid personal protective equipment, including gowns, masks, and visors, had to be written off due to governmental oversight. Department of Health accounts disclosed that £673 million worth of equipment was unusable, and £750 million was wasted on items that expired before use.
Small businesses faced significant challenges during the pandemic, with many struggling to adapt to new restrictions and financial uncertainties. The Covid Voluntary Repayment Scheme aims to provide these businesses with an opportunity to correct any past errors by returning funds to vital services like the NHS, schools, and armed forces.
The scheme offers a straightforward way for individuals to rectify their claims without facing public shame or extensive investigations. However, the window for voluntary repayments ends in December 2025, after which new investigative powers will be implemented, potentially leading to severe penalties, including business closures, disqualifications, legal actions, and imprisonment.
Hayhoe’s message is clear: address outstanding debts promptly to avoid harsher consequences later on. Pay now, clear your conscience, or prepare to face the repercussions.