London Daily

Focus on the big picture.
Tuesday, Jul 01, 2025

Covid fraud: Rishi Sunak denies writing off stolen support funds

Covid fraud: Rishi Sunak denies writing off stolen support funds

Chancellor Rishi Sunak has denied "ignoring" fraudulently claimed Covid support funds worth billions of pounds.

Mr Sunak said the UK government would "do everything we can" to recover loans stolen by fraudsters.

On Monday, a Conservative minister resigned over the government's "woeful" efforts to stop abuse of pandemic support schemes.

The government last week disputed reports it had written off £4.3bn of loans.

Announcing his resignation in the House of Lords, Treasury minister Lord Agnew accused the Treasury of having "little interest in the consequences of fraud to our society" and of making "schoolboy errors" over the awarding of loans.

In its annual report, HM Revenue and Customs (HMRC) said funds had been lost to fraud, including 2.5% of the £19.7bn delivered through self-employed support.

Last year, the National Audit Office criticised the government for failing to implement measures to prevent people exploiting Covid schemes.

Labour have demanded an investigation.

'Public purse'


At Prime Minister's Questions, Labour MP Kate Osamor asked if the prime minister had agreed to the chancellor "writing off £4.3 billion of fraud".

"That's £154 for every household in the country that went directly into the pockets of fraudsters," she added.

In response, Prime Minister Boris Johnson said: "No, of course not. We do not support fraudsters or those who steal from the public purse."

The prime minister's official spokesman later clarified that Mr Johnson meant he did not condone fraud.

Later, in a Twitter thread, Mr Sunak said people were "absolutely right to be" concerned about fraudulently obtained funds.

"No, I'm not ignoring it, and I'm definitely not 'writing it off'," Mr Sunak wrote.

'Needed support quickly'


He said the government had invested more than £100m in an anti-fraud taskforce with 1,265 staff. He said 3,000 one-to-one enquiries were opened in 2020/21 and HMRC wrote to 75,000 people.

Last year, the government stopped or recovered nearly £2.2bn in potential fraud from Bounce Back Loans and £743m of overclaimed furlough grants, Mr Sunak said.

He said businesses were "on the brink of collapse" and "needed support quickly" when assistance schemes were rolled out.

In recent days, Mr Sunak has come under increasing pressure to claw back Covid support lost to fraud.

Labour's shadow chancellor Rachel Reeves said the scale of Covid funds lost to fraud should be a "source of enduring shame to the Chancellor".

The Liberal Democrats said the government had "allowed fraudsters to steal billions of taxpayers' money" and urged the chancellor to explain how he would get the money back.


Lord Agnew accuses the Treasury of having "little interest in the consequences of fraud to our society"


Newsletter

Related Articles

0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×