The government is warning a voluntary window to return any money owed to taxpayers claimed through pandemic-era schemes closes shortly before midnight on December 31
Suspected Covid fraudsters and those who wrongly took taxpayers’ cash have just 48 hours to repay – or face more severe penalties.
A voluntary window to return the money claimed through pandemic-era schemes closes shortly before midnight on December 31. Launched in September allows individuals to pay back financial support they didn’t need or weren’t entitled to as the virus ripped through the country.
They include programmes such as furlough, bounce-back loans, business support grants, and the Eat Out to Help Out scheme – set up by ex Tory PM Rishi Sunak.
The Treasury warned those who fail to comply face being slapped with 100% fines and in some cases charged interests and penalties. In the most serious cases where fraud or deliberate abuse is suspected, claimants face criminal action and a potential prison sentence.
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Chancellor Rachel Reeves said: “The message is clear – if you wrongly claimed, put it right now. This money belongs to your local community – our NHS, our schools and our vital public services took tax-payer-funded help they weren’t entitled to and who fails to come forward will face the consequences.”
In September, Counter-fraud commissioner Tom Hayhoe urged people to use the voluntary window to “wipe the slate clean and move on”. Launching the scheme in an article for The Mirror, he had warned: “This offer won’t be around forever. New investigatory powers are coming. Businesses could be shut down.
“People could be banned from running a company. Thousands could face their day in court. The worst offenders will go to prison.” He added: “My message is clear – pay now, clear your conscience, or face the consequences.”
It comes after the government set up a Covid fraud reporting hotline, which has so far received 300 allegations totalling £35million. A new fraud team will begin work in the New Year investigating the claims.
Earlier this month, Mr Hayhoe found an eye-watering £10.9billion was lost to the taxpayer during the pandemic. His final report said some £1.8billion had been clawed back but “much of the shortfall is now beyond recovery”.
But Mr Hayhoe said “areas remain where investing in recovering money paid out incorrectly is worthwhile and work should continue.” Mr Hayhoe said the then Tory Government “paid too little attention to the risk of fraud” as it battled to contain the spread of the deadly virus.
