Covid fraud cost UK taxpayers £10.9 billion
Covid-related government schemes such as Eat Out to Help Out left the door open to fraud, costing the British taxpayer £10.9 billion.
This is according to the final report from Covid Counter Fraud Commissioner Tom Hayhoe, which said that poor accountability, bad quality data and bad contracting were identified as the primary causes of the £10.9 billion pound losses.
Schemes such as Bounce Back Loans and Eat Out to Help Out were also rolled out with no early safeguards and created significant fraud risks that cost millions.
The government said that the £10.9 billion total losses to Covid fraud and negligence were enough to fund daily school meals for the 2.7 million eligible children in the UK for eight years.
Hayhoe was appointed by Chancellor Rachel Reeves in December 2024 to investigate the negligence and fraud surrounding the previous government’s response to the Covid pandemic, and the government has promised to recoup funds lost to fraudsters.
£400 million of covid support cash, and the government has launched a voluntary repayment scheme that gives claimants until 31 December to return fraudulently claimed funds.
Tougher sanctions powers have also been enabled through through the Public Authorities (Fraud, Error and Recovery) Bill, which became law on 2 December, and specialist fraud recovery teams will begin to track down suspected fraudsters and recover taxpayer cash in 2026.
“Leaving the front door wide open to fraud has cost the British taxpayer £10.9 billion — money that should have been funding our public services, supporting families, and strengthening our economy,” Reeves said.
“We have started returning this money to the British people and we will leave no stone unturned in rooting out the fraudsters who profited from pandemic negligence.”
The government said it will consider the report in full and respond early in the new year.
