Businesses and individuals who falsely received financial aid during the Covid-19 pandemic are being strongly advised today to repay the money and “absolve your guilt” promptly, or else face repercussions.
The Treasury’s counter-fraud commissioner, Tom Hayhoe, is promoting a new initiative where individuals can voluntarily return any funds they were not entitled to or did not require. Hayhoe emphasizes the importance of taking this opportunity to rectify the situation before a December deadline, offering a “no questions asked” window for repayment.
In an article for The Mirror, Hayhoe cautioned that failing to comply could lead to serious consequences, including potential business closures, bans on company ownership, legal action, and even imprisonment for the most severe offenders.
Hayhoe reiterated the message, urging those who owe Covid-related funds to settle their debts promptly to benefit communities, the NHS, police, and armed forces. Failure to participate in the repayment scheme could result in prosecution, disqualification, or imprisonment for individuals who knowingly made improper claims using taxpayer-funded assistance.
The Treasury also announced the launch of a Covid fraud reporting website to allow the public to report suspected fraudulent activities. The voluntary repayment window covers various Covid-era schemes such as furlough, bounce-back loans, support grants, and the Eat Out to Help Out program.
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 expenditure 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 wastage during the Covid crisis. The Treasury reported that over £10 billion was lost to fraud, flawed contracts, and waste under the previous government, with only £1.5 billion recovered thus far.
Earlier this year, Hayhoe reviewed £8.7 billion in Covid personal protective equipment (PPE), including gowns, masks, and visors, that had to be written off due to inefficiencies. Department of Health accounts revealed that £673 million worth of equipment was unusable, and £750 million was wasted on items that expired before use.
Small business owners, deeply impacted by the pandemic, faced unprecedented challenges, struggling to adapt and survive amidst changing regulations and confusing guidance. Many individuals made regrettable decisions, including claiming funds they were not entitled to, causing distress and guilt.
The Covid Voluntary Repayment Scheme, launched to address these issues, provides a straightforward opportunity for individuals to return misappropriated funds without facing extensive investigations or public scrutiny. However, the scheme is time-limited, and failure to participate may result in severe consequences as new investigatory powers are introduced, potentially leading to legal actions, business closures, or imprisonment.
Hayhoe’s clear message to those in debt is to act now to rectify the situation or face harsher penalties later. The Covid Voluntary Repayment Scheme will remain open until December 2025, offering individuals the chance to clear their conscience by returning funds to support essential services and communities.