The Public Accounts Committee (PAC) has criticised the government for losing
billions of taxpayers' money to fraud and error in pandemic support.
The Department for Business and Trade (DBT) is 'effectively writing off'
nearly £1 billion paid out erroneously by local authorities on its behalf in
pandemic support. Meanwhile, of an estimated £2.2 billion lost to fraud and
error in Covid-19 schemes, only about £10 million has so far been recovered.
The PAC's report says the DBT continues to make slow progress on its counter
fraud activities related to the Bounce Back Loan Scheme, and its 'lack of
curiosity' about lenders' performance increases the risk of losses for
the taxpayer.
Despite accepting that grant payments made through councils to their local
businesses under Covid-19 business support grant schemes were 'not in line
with how the scheme was meant to work', the Business Department does
not expect to recoup these funds. Of the estimated £985 million of grants paid
out in error, only £5.3 million has been recovered.
Dame Meg Hillier MP, Chair of the Public Accounts Committee, said:
'At a time of financial crisis, the Department for Business has lost billions
of taxpayers' desperately needed funds. It shows no real signs of making the
improvements that would prevent the big mistakes it has made over many
years, especially during the pandemic, happening all over again.'
Internet link: Parliament website