COVID support schemes ‘lost billions to fraud and error’, report finds
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.”
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January: Minister for tackling COVID loan fraud resigns
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%.”
All flights were halted at Edinburgh Airport this morning due to an IT issue affecting its air traffic control provider.
In a post on X, formerly Twitter, the airport later announced service had resumed.
Its post read: “Flights have now resumed following the IT issue with our air traffic provider.
“We thank passengers for their patience and understanding.”
But passengers continue to feel the effects.
A Delta Air Lines flight from New York to Edinburgh was diverted to Dublin after going into a holding pattern over the Scottish capital.
And a live arrivals board on the airport’s website showed multiple flights diverted, delayed and cancelled.
Arrivals board at Edinburgh Airport. Pic: Edinburgh Airport
Morven McCall and Cody Stevenson, both 19, were due to fly easyJet from Edinburgh to Amsterdam on their first trip away together.
Morven told Sky News: “We literally just got into the airport and as soon as we walked through the door there was an announcement that it had been cancelled.
“I was ill over the summer and had to cancel two holidays already, this was our first time going away together. We are just gutted and stressed.”
Follow live: Latest updates as flights halted
Arrivals at Edinburgh Airport. File pic: PA
One passenger was on a plane when they found out.
They said: “We boarded our flight and pushed back on time for an 8.45 (am) departure, then sat for a while before the pilot told us what was happening.
“He updated us a couple of times, cabin crew are brilliant at handing out water etc, and I’m surprised that everyone appears to be upbeat. But then you do wonder how long for, just been told we’re hoping to be in the air in 20 minutes.”
Another passenger told us: “The first news was from the airport announcement as we were halfway through boarding, saying the airfield was closed due to air traffic control down.
“No one knew what was going on. We’d already been delayed a bit before boarding, with no reason. I suspect problems started about 9am.”
It comes after an earlier announcement that all flights had been halted.
“No flights are currently operating from Edinburgh Airport,” the previous statement said.
“Teams are working on the issue and will resolve as soon as possible.”
There was no timeframe for recovery initially, Sky News learned.
It’s understood by PA that the issue was not linked to today’s Cloudflare outage.
Edinburgh Trams also posted on X, writing: “If you’re travelling with us to @EDI_Airport this morning, please be aware that flights are not currently operating.”
The airport urged passengers to contact their airline for the latest information on flights.
An average of 43,000 passengers per day use the airport, which is served by 37 airlines flying to 155 destinations.
A former doctor has been charged over alleged sexual assaults on 38 patients in his care.
Nathaniel Spencer, 38, has been charged with 15 counts of sexual assault, 17 counts of assault by penetration, nine counts of sexual assault of a child under 13, three counts of assault a child under 13 by penetration and one count of attempted assault by penetration.
It follows a police investigation into alleged sexual offences between 2017 and 2021.
Staffordshire Police said in a statement the charges come after a complex investigation by the Public Protection Unit into sexual offences at the Royal Stoke University Hospital, in Stoke-on-Trent, and Russells Hall Hospital, in Dudley.
North Staffordshire Justice Centre
Ben Samples, deputy chief crown prosecutor for the West Midlands CPS Complex Casework Unit and Serious Violence, Organised Crime and Exploitation Unit, said: “We have decided to prosecute Nathaniel Spencer for a number of serious sexual offences allegedly carried out against patients while he was working as a doctor – including assault by penetration and sexual assault against a child.
“Our prosecutors have worked at length to support a detailed and complex investigation by Staffordshire Police, carefully reviewing the available evidence to establish that there is sufficient evidence to bring the case to trial and that it is in the public interest to pursue criminal proceedings.”
Spencer, from Birmingham, will appear at North Staffordshire Justice Centre on 20 January 2026.
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