London Daily

Focus on the big picture.
Saturday, Feb 21, 2026

'Hasty' furlough scheme 'left room for fraud' say MPs

'Hasty' furlough scheme 'left room for fraud' say MPs

Rushed-through coronavirus aid may have led to the loss of billions of pounds of taxpayers' money through fraud and error, MPs have warned.
There was an "astonishing lack of economic planning for a pandemic" which led to "hastily drawn up economic support schemes", the Commons Public Accounts Committee said.

That meant "unacceptable room for fraud against taxpayers," it added.

But the government said the schemes "had provided a lifeline to millions".

"We make no apology for the speed at which they were delivered," a spokesman said, adding that the government had rejected "thousands of fraudulent claims". "Without them lives would have been ruined."

Since the spring, the government has approved billions in spending and tax cuts to cushion the economy from the effects of the pandemic, including discounts to encourage dining out and income support for furloughed workers.

The furlough scheme, which is due to finish at the end of October, was designed to pay 80% of the wages of employees at firms hit by the pandemic.

According to the latest figures, it sent £39.3bn to 1.2 million employers to the 20 September.

But a recent estimate by Her Majesty's Revenue and Customs (HMRC) suggested that up to 10% of the money delivered by the scheme to mid-August - £3.5bn - may have been paid out in fraud or error.

The Commons Public Accounts Committee, which reviews government expenditure, described the figure as "very worrying".

The government should have been better prepared for the economic fall-out from the coronavirus outbreak, as a pandemic had been top of the national risk register for years, Committee chair Meg Hillier said

"Our finding of the astonishing lack of economic planning for a pandemic shows how the unacceptable room for fraud against taxpayers was allowed into the government's hastily drawn up economic support schemes," she said.

"I would like to see the government publish a list of the companies which received furlough money. Where taxpayers money is being used, transparency should be a given."

The committee also said when the outbreak occurred, HMRC switched staff from frontline tax collection activities to guiding taxpayers through the various Covid support schemes. But that has hurt the government's ability to collect revenue.

HMRC has estimated the revenue it collected through its compliance work in the first three months of the tax year 2020-21 was down 51% on the same period the previous year, and warned the sums may never be recovered.

The committee said HMRC had administered the tax system based on the assumption that that the "vast majority" of taxpayers would be able to meet their obligations and that only a "few exceptions" would need to be pursued for non-compliance.

It said HMRC recently started issuing penalties for people not filing tax returns, because there has been a drop in the numbers being filed.
Newsletter

Related Articles

0:00
0:00
Close
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
The Impact of U.S. Sanctions on Cuba's Humanitarian Crisis: A Tightening Noose
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
United Kingdom Denies U.S. Access to Military Base for Potential Iran Strike
British Co-founder of ASOS falls to his death from Pattaya apartment
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Two teens arrested in France for alleged terror plot.
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
×