More than 50 criminal investigations begin into suspected fraud linked to Covid support schemes

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Andrew Feinberg

White House Correspondent

More than 50 criminal investigations have started into suspected fraud linked to Covid-19 support schemes, according to Jeremy Hunt.

The Chancellor added that a total of 80 arrests have been made so far as he responded to concerns from Labour.

Speaking at Treasury questions, shadow chancellor Rachel Reeves said the UK Covid-19 Inquiry is uncovering “unsavoury examples of Government mismanagement”.

She added: “We already know that ministers ignored warnings that their business loan schemes were vulnerable to organised crime yet the Prime Minister left the vaults open to fraudsters.

“So can the Chancellor update the House today on the latest estimates of taxpayers’ money lost to fraud from the Covid support schemes?”

Mr Hunt replied: “I’m very happy to tell the shadow chancellor that the HMRC compliance effort on Covid-19 support schemes, which started when the schemes were set up in spring 2020, has prevented the payment of, or recovered the overpayment of, over £1.6 billion of grants as of September 2023.”

Ms Reeves countered: “According to the House of Commons Library’s most recent numbers, Covid fraud losses total a staggering £7.2 billion – that’s bigger than the fiscal headroom than the Chancellor had at the spring budget.

“And more stories are coming to light of companies with undeclared interests and PPE (personal protective equipment) contracts not delivering to the standards required.

“So ahead of the autumn statement, can the Chancellor confirm that the Government has also had to write off over £8.7 billion from pandemic PPE contracts?”

Mr Hunt replied: “We have no quarter with any incidents of fraud and we have commenced 51 criminal investigations into suspected fraud and there have been a total of 80 arrests so far.”

He went on to defend the Government’s pandemic support package and its impact on the UK economy.