Suspected individuals involved in Covid-related fraud are being cautioned before facing stricter consequences. As part of a government initiative to combat fraud, those who made wrongful claims during the pandemic are being offered the opportunity to voluntarily return the money by the end of the year.
As the December deadline nears, the Labour party has issued a warning, stating that time is running out for those who owe money to the government. A spokesperson emphasized that the voluntary repayment program concludes in December, urging individuals to settle their debts promptly to avoid scrutiny from the Covid fraud enforcement team.
Labour announced that more individuals suspected of fraudulent activities will receive cautionary letters in the upcoming week. Counter-fraud commissioner Tom Hayhoe has previously highlighted that individuals who made improper claims under pandemic support schemes and fail to meet the December deadline will be pursued using enhanced enforcement powers.
Pandemic-era schemes within the voluntary repayment period encompass initiatives such as furlough, bounce-back loans, support grants, and the Eat Out to Help Out program.
According to the Treasury, over £10 billion was lost to fraud, flawed contracts, and wastage during the pandemic under the previous administration, with £1.5 billion successfully recovered.
Earlier this year, Mr. Hayhoe scrutinized £8.7 billion worth of Covid personal protective equipment (PPE), including gowns, masks, and visors, that had to be written off the government’s financial records. Department of Health reports in 2022 revealed that £673 million worth of equipment was unusable, and £750 million was wasted on items that expired before use.
The government recently secured a victory against PPE Medpro, a company associated with Baroness Michelle Mone, in a legal battle. The company, responsible for supplying 25 million surgical gowns during the pandemic, was instructed to repay over £121 million for breaching a PPE contract.
During a recent court ruling, Mrs. Justice Cockerill stated that PPE Medpro had violated the contract and that the Department of Health and Social Care was entitled to damages for the unusable gowns.
The company, led by Baroness Mone’s husband, businessman Doug Barrowman, secured government contracts under the previous administration. The couple has denied any allegations of misconduct.