MPs have criticised HMRC’s performance in tackling Covid-19 support fraud, after recovering only £640,000 of an estimated £2.3bn in furlough payments fraudulently claimed by employers
HMRC’s shortcomings in dealing with problems in the covid schemes meant that some people in need of support missed out while others got money where it wasn’t needed.
The Public Accounts Committee said that said levels of unrecovered error and fraud were ‘far too high’ and HMRC investigators have had ‘little success’ in recovering around £2.3bn incorrectly paid to employers claiming furlough for employees who continued to work.
By March 2022, HMRC’s compliance activity targeting employers claiming furlough recovered only £640,000, equivalent to just 0.03% of the money claimed incorrectly.
HMRC distributed £68.9bn in furlough payments to 1.3 million people and £28.1bn for five self employment income support scheme (SEISS) grants to 2.9m self-employed people.
