Government failed to control £21bn covid fraud

The government needs to take urgent action to prevent a repeat of the high level of fraud perpetrated during covid should another emergency crisis hit the country

The spending watchdog has warned government that it needs to put robust plans and protections into action now, and not wait until another crisis happens after billions of pounds were stolen in fraudulent claims for covid loans and grants, and benefit fraud, during the pandemic.

Pre pandemic government-related fraud was running at an average £5.5bn a year, and it shot up to an eye-watering £21bn during covid, with £7.3bn related to temporary covid schemes such as bounce back loans and eat out to help out, while over £9bn related to benefit fraud.

The figures were revealed following National Audit Office (NAO) analysis of government department accounts to identify the levels of reported fraud during the pandemic.

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