London Daily

Focus on the big picture.
Saturday, Dec 13, 2025

'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
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
×