A specialized team will be granted authority to conduct raids on properties belonging to individuals involved in fraudulent activities related to Covid-19 and to recover funds that rightfully belong to taxpayers. The government is set to introduce new legislation to extend the time limit for pursuing civil claims from six to 12 years. This legislation will empower the Public Sector Fraud Authority (PSFA) under the Cabinet Office to take stronger actions, including seizing assets and reclaiming funds from the bank accounts of those engaged in severe fraud cases.
Recently, the government appointed a Covid corruption commissioner to investigate the handling of £8.7 billion spent on personal protective equipment (PPE) during the pandemic, a significant portion of which had to be written off. Additionally, the commissioner will scrutinize the decision by the Conservative government to abandon efforts to recover funds from transactions totaling £674 million.
Cabinet Office Minister Georgia Gould emphasized the necessity of these new measures, stating that some individuals exploited public funds for personal gain during the pandemic. The proposed legislation aims to equip the government with robust tools to investigate and retrieve funds misappropriated during the Covid-19 crisis, while also extending the timeframe for prosecuting fraudsters.
These changes will be incorporated into the Public Authorities (Fraud, Error & Recovery) Bill, which will encompass strategies to combat fraudulent activities in welfare schemes. Benefit cheats who persistently fail to repay the public funds they owe may face penalties, such as losing their driving privileges. The Department for Work and Pensions (DWP) will have the authority to request driving license suspensions for fraudsters with debts exceeding £1,000 who repeatedly neglect repayment obligations. Moreover, DWP’s serious organized crime investigators will be empowered to seek court warrants for searches and seizures of evidence from premises, including electronic devices.
In a statement, Work and Pensions Secretary Liz Kendall affirmed the government’s commitment to thwarting criminals who manipulate the system and exploit honest taxpayers. The government assured the implementation of protective measures to safeguard vulnerable individuals and mechanisms for overseeing the utilization of the strengthened enforcement powers.
The DWP projected savings of £1.5 billion over the next five years through these initiatives, aligning with the government’s broader agenda to reduce public spending by making substantial cuts to the benefits budget.