London Daily

Focus on the big picture.
Saturday, May 31, 2025

£21bn of public money lost in fraud since COVID pandemic began and most will never be recovered

£21bn of public money lost in fraud since COVID pandemic began and most will never be recovered

The National Audit Office revealed the staggering increase of money lost due to fraud since the pandemic hit compared to a couple of years before it. Over £7bn of the total relates to governmental schemes introduced during COVID.
Tens of billions of pounds have been lost to fraud since the start of the COVID pandemic, according to the National Audit Office (NAO), with little chance of the majority being reclaimed.

Of the £21bn identified by the NAO to have been lost by the government, more than £7bn is linked to schemes introduced during the pandemic

And it says it is "very unlikely" that the bulk of the taxpayers' money will be recovered.

Levels of fraud rose almost fourfold from £5.5bn two years before the pandemic to £21bn in the following two years.

The NAO said many public bodies are unaware of the amount of fraud they face, with a host of COVID employment scheme fraudulent claims being chased up by the HMRC.

The NAO said that HMRC expects to have recovered £1.1bn out of an estimated £4.5bn by the time its taxpayer protection taskforce - a body of more than 1,200 tax specialists that responds to error and fraud - is scaled down.

The report says: "The Department for Work & Pensions generated fraud and error savings of £500 million through its retrospective review of Universal Credit claims made over the height of the pandemic, but at least £1.5bn of fraudulent claims that started during that period were still being paid in 2021-22.

"DWP is now planning targeted case reviews to detect and recover as much of the rest as it can."

Head of the NAO, Gareth Davies, said: "There has been a substantial increase in the level of fraud reported in the annual reports and accounts we audit.

"In addition to the loss of taxpayer money, it creates the risk that people come to perceive fraud and corruption across government as normal and tolerated. If not tackled, this could affect public confidence in the integrity of public services."

He said the creation of the Public Sector Fraud Authority (PSFA) last year in response to fraud over the pandemic represented a "real opportunity" to tackle fraud effectively.

A government spokesperson said: "We are overhauling how we tackle public sector fraud to ensure we chase down every pound stolen from British taxpayers.

"Since 2021, we have invested more than £900 million in taking action on fraud and, as the report acknowledges, we have made progress by establishing the Public Sector Fraud Authority which is stepping up the government's efforts to protect taxpayers' money.

"The government has recovered more than £3.1bn of fraud losses in the last two years, including within COVID-19 schemes, but we know there is more we can do."

They added that the Government Counter Fraud Profession is "expanding" with more technology and training offered to "further protect the public purse".
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×