Covid loan fraud and error will cost UK taxpayers tens of billions, say MPs

Taxpayers will lose tens of billions of pounds to covid-19 support schemes because the government dropped basic fraud checks and rolled out the programmes in haste, a parliamentary report has claimed

The report, published by the public accounts committee (PAC), covered the threat to fraud that each government department faced during the covid-19 pandemic. The committee state that they acknowledged that the government acted quickly to provide vital support to vulnerable businesses at the start of the pandemic. However, the decision to prioritise speed and financial aid meant taxpayer exposure to fraud and error was ‘significantly increased’

The report states that fraud and error were already long-standing threats to the public purse and cost the taxpayer in the region of £29.3bn to £51.8bn in 2018-19. The report states that because of the hastiness it will result in ‘billions of pounds of additional losses’ with the Cabinet Office estimating that the annual level of undetected fraud and error could cost the taxpayer up to £25bn a year before covid-19 schemes are even considered.

The

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