COVID support schemes ‘lost billions to fraud and error’, report finds

Published

2 years ago

October 13, 2022

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Billions of pounds awarded as part of COVID-19 employment support schemes went to people whose incomes increased or “were not significantly impacted by the pandemic”, a public spending watchdog has warned.

The National Audit Office (NAO) has criticised the government for not doing more to prevent mistakes and fraudulent claims when rolling out the furlough scheme and the self-employment income support scheme (SEISS), warning that billions of pounds could remain unrecovered.

In total, according to the latest report into the financial packages by the NAO, £4.5bn was claimed in error or in fraud – nearly 4.6% of the total cost of the £96.9bn spent by the government on emergency COVID-19 support.

Even that estimate is subject to “considerable uncertainty”, with the fraud and error figures ranging from between £3.2bn and £6.3bn.

Gareth Davies, the National Audit Office head, said that the government needs to ensure “sufficient resources” are available to tackle the issue.

He said that while the furlough and self-employed schemes prevented millions of job losses, “billions went to people whose incomes increased during the pandemic, and billions more was lost in fraud and error”.

In the detailed report published on Thursday, auditors found that the schemes met their objectives of protecting workers and businesses after lockdowns were introduced, and that the cost of the schemes was also lower than estimated by the government.

However, officials had stern words for the Treasury over the design of the scheme, effectively suggesting that it could have done more to save money.

In particular, the government is criticised for not making use from the outset of clear financial impact tests.

Around £5,900 was the average paid for each furloughed job over the course of the scheme, while £9,700 was the average amount each self-employed claimant received.

The report reveals that on average an increase of more than £2,200 was recorded in the profits of self-employed people who received COVID-19 grants in 2020 and 2021.

According to the report, “it is likely that several billion pounds have been paid to claimants who saw their incomes increase during the period”.

The report added: “While the figures are highly uncertain, large amounts of error and fraud are unlikely ever to be recovered. The departments will need to ensure they continue to bear down on fraud, where it is cost-effective to do so, and pursue the most serious cases with the full force of the law where it serves the public interest.”

There were 24 criminal investigations under way into fraudulent claims as of March, with the HMRC predicting it will recover around £1.1bn over the next two years.

Responding to the report, a government spokesman said: “We are not writing off any fraud from these schemes – our work to root out those who abused the system is ongoing.

“Meanwhile, we effectively minimised fraud from the start with compliance checks that did not unnecessarily delay payments when they were needed and further compliance activity undertaken by HMRC has secured and protected more than £1bn.

“The NAO found that the employment support schemes achieved their primary aim of protecting jobs and businesses, with unemployment peaking at just 5.2%.”

UK

Canterbury MP Rosie Duffield quits Labour – criticising Sir Keir Starmer in resignation letter

Published

2 hours ago

September 28, 2024

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Canterbury MP Rosie Duffield quits Labour - criticising Sir Keir Starmer in resignation letter

Canterbury MP Rosie Duffield has resigned from the Labour Party.

The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.

She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.

In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.

“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.

Sir Keir has faced backlash after a Sky News report revealed he had received substantially more freebies than any other MP since becoming Labour leader.

Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.

Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.

She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.

“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.

“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”

Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.

Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.

“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.

Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.

UK

King Charles hails ‘uniquely special’ Scotland as it marks Holyrood milestone – before being hugged by woman

Published

2 hours ago

September 28, 2024

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King Charles hails 'uniquely special' Scotland as it marks Holyrood milestone - before being hugged by woman

The King has paid tribute to Scotland as a “uniquely special place” for the Royal Family as he marked the 25th anniversary of the Scottish parliament.

At the ceremony to commemorate a quarter of a century since parliament opened at Holyrood, the King said: “Speaking from a personal perspective, Scotland has always had a uniquely special place in the hearts of my family and myself.

“My beloved grandmother was proudly Scottish, my late mother especially treasured the time spent at Balmoral, and it was there in the most beloved of places, where she chose to spend her final days.”

He said we are all “united by our love of Scotland”, paying tribute to its “natural beauty”, “strength of character”, “diversity of its people”, “passions and frequently deeply held beliefs”.

“From the central belt to the north Highlands, across the islands in Ayrshire, in the Borders, the cities, towns and villages, all the coastal communities, who I wonder, could not fail to be moved by this complex Caledonian kaleidoscope?,” he asked as presiding officer Alison Johnstone and the Queen sat beside him.

After he gave the speech, the King was hugged by a member of the public – who said she did so “because of him being unwell”.

The 75-year-old was diagnosed with cancer in February but has since returned to public duties.

Yvonne Macmillan, 59, from East Renfrewshire, attended the anniversary ceremony with her husband Russell who is registered blind and chosen as a “local hero” for work in their area.

“I asked him if he was feeling better and if I could give him a hug. I actually said to him: ‘Can I hug you?’,” she said.

“As I hugged him I said, ‘God bless you’, so it was like God giving him a hug.”

While Sir Tony Blair’s Labour government legislated for Scottish devolution in 1997 – parliament officially opened at Holyrood on 1 July 1999.

The King has made six visits to the parliament since 1999 – while his mother Queen Elizabeth II made 10 visits during her lifetime.

Scottish First Minister John Swinney is one of a number of MSPs who have been at Holyrood since the start of devolution.

He said in his own speech in Edinburgh on Saturday that the parliament has “placed itself at the very heart of the nation”, describing it as a “vessel of enlightenment, invention and creativity”.

The SNP’s Christine Grahame is another MSP who has been there since the start.

“Free tuition, free prescriptions, game-changing policies to tackle child poverty, the ban on smoking, the baby box, ScotRail back in public ownership – none of this would have been possible without the Scottish parliament and the strength of our commitment to self-determination,” she said on Saturday.

The King said the devolved parliament has the ability to “touch and to improve the lives of so many individuals”.

But he added that “there remains much more to be done” for Scotland, the rest of the UK, particularly with regards to climate change.

“Let this moment therefore be the beginning of the next chapter,” he told those assembled.

“The achievement of the past and the commitment shown in the present give us the soundest basis for confidence in the future.”

UK

Phone thief caught red-handed hours after snatching device from woman’s hand in Croydon

Published

2 hours ago

September 28, 2024

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Phone thief caught red-handed hours after snatching device from woman's hand in Croydon

A moped riding phone thief was caught red-handed after police tracked the device down hours after he snatched it from a woman’s hand.

CCTV footage released by police showed a masked moped rider mount the pavement in Croydon, south London, to swipe a phone from a woman’s hand on 6 March, while another victim had theirs stolen while they waited for a bus an hour later.

Amari Scott, 20, looked surprised when confronted by officers inside a shop, where he was found with two mobile phones.

“We’ve just had a moped rob a mobile phone off the pavement and the phone is pinging in this location,” one of the officers told him in body-worn camera footage before Scott was handcuffed and led away.

Police also recovered a stolen motorbike and Scott, from Sutton, south London, was later jailed for four years.

Two teenagers who committed four robberies in the space of just half an hour were also arrested as part of a crackdown in Croydon.

Aged 16 and 17, the teens were issued with referral orders after pleading guilty to charges of robbery, attempted robbery and attempted grievous bodily harm.

They were behind a spree of eight robberies across Croydon and nearby Bromley, including four within 30 minutes on the morning of 5 August.

Their crimes, which included the knife point robbery of a rough sleeper outside Croydon library, were caught on CCTV.

One of the teenagers tried to discard a knife before she was arrested after a foot chase, telling officers: “The knife wasn’t mine”.

The other ran away, leaving a knife and his bag, but was lying in bed at home when he was arrested shortly after.

The Metropolitan Police said officers are intensifying efforts to tackle robbery and theft, encouraging victims to report incidents as they happen to increase the chances of catching the criminals.

Chief Inspector James Weston said: “We understand the impact that robbery has on victims – it is invasive and frightening.

“That’s why our teams are working so hard to deter and catch offenders to reassure our local community.

“Thanks to the hard work of officers, our partners and community grassroots organisations, we are stepping up our efforts and tackling the issues that matter most to the people of Croydon.”