Suspected individuals involved in Covid-related fraud and those who improperly received government funds are being given a limited 48-hour period to repay the money or face more severe consequences.
The voluntary repayment window for funds obtained through pandemic relief programs is scheduled to close just before midnight on December 31. This initiative, launched in September, allows recipients to return financial support that was either unnecessary or not rightfully theirs during the pandemic outbreak.
Affected programs include schemes such as furlough, bounce-back loans, business grants, and the Eat Out to Help Out initiative, which was initiated by former Prime Minister Rishi Sunak.
The Treasury has issued warnings that non-compliance will result in hefty fines of up to 100%, along with possible interest charges and penalties. In cases of suspected fraud or deliberate misuse, individuals may face criminal prosecution and potential imprisonment.
Chancellor Rachel Reeves emphasized the importance of rectifying any wrongful claims, stating that the misappropriated funds belong to local communities, essential services like the NHS and schools. Failure to come forward and repay the funds will lead to severe repercussions.
In September, Counter-fraud commissioner Tom Hayhoe encouraged individuals to utilize the voluntary repayment window to rectify their actions and move forward. He highlighted the impending implementation of new investigative powers that could lead to severe consequences, including business closures and legal actions.
The government established a Covid fraud reporting hotline, receiving 300 allegations amounting to £35 million. A dedicated fraud team will commence investigations in the New Year to address these claims.
Mr. Hayhoe’s recent findings revealed that £10.9 billion was lost to fraudulent activities during the pandemic, with only £1.8 billion recovered. He emphasized the need to continue efforts in recovering incorrectly disbursed funds and criticized the government for overlooking fraud risks during the crisis.
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