Suspected individuals involved in Covid-related fraud are being cautioned before potentially facing harsher consequences. As part of a government anti-fraud initiative, those who improperly received funds during the pandemic are being offered the opportunity to return the money voluntarily by the end of this year.
As the deadline in December draws near, the Labour party has issued a stern reminder, emphasizing that time is running out for individuals with outstanding debts to repay. A Labour spokesperson stated, “The voluntary repayment scheme concludes in December – the message is clear, settle your dues now or be subject to investigation by the Covid fraud enforcement team.”
Labour disclosed that more individuals under suspicion of fraudulent claims will soon receive cautionary letters. Counter-fraud commissioner Tom Hayhoe has previously cautioned that individuals who falsely obtained funds through pandemic support programs and fail to meet the December deadline will be pursued using enhanced legal powers.
Schemes established during the Covid era within the voluntary repayment window encompass initiatives like the furlough scheme, bounce-back loans, support grants, and the Eat Out to Help Out program.
The Treasury reported a loss exceeding £10 billion during the pandemic due to fraud, flawed contracts, and inefficiencies under the Conservative government, with £1.5 billion subsequently recovered.
Earlier this year, Mr. Hayhoe reviewed £8.7 billion worth of Covid-related personal protective equipment (PPE), including gowns, masks, and visors, that had to be written off the government’s accounts. Department of Health records from 2022 revealed that £673 million worth of equipment was rendered unusable, and £750 million was wasted on items that expired before use.
Following successful litigation, the government secured a repayment of over £121 million from PPE Medpro, a company associated with Baroness Michelle Mone, for breaching a PPE contract. Mrs. Justice Cockerill, summarizing her ruling, deemed the contract complex but concluded that PPE Medpro had indeed breached it. She affirmed that the Department of Health and Social Care was entitled to the gown’s price as damages due to their inability to be used as sterile gowns.
PPE Medpro, led by businessman Doug Barrowman, the husband of Baroness Mone, was granted government contracts by the previous Tory administration. The couple has denied any misconduct.