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.
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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.
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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%.”
An inquiry into the case of a hospital worker who sexually abused dozens of corpses has concluded that “offences such as those committed by David Fuller could happen again”.
It found that “current arrangements in England for the regulation and oversight of the care of people after death are partial, ineffective and, in significant areas, completely lacking”.
Phase 2 of the inquiry has examined the broader national picture and considered if procedures and practices in other hospital and non-hospital settings, where deceased people are kept, safeguard their security and dignity.
During his time as a maintenance worker, he also abused the corpses of at least 101 women and girls at Kent and Sussex Hospital and the Tunbridge Wells Hospital before his arrest in December 2020.
His victims ranged in age from nine to 100.
Phase 1 of the inquiry found he entered one mortuary 444 times in the space of one year “unnoticed and unchecked” and that deceased people were also left out of fridges and overnight during working hours.
‘Inadequate management, governance and processes’
Presenting the findings on Tuesday, Sir Jonathan Michael, chair of the inquiry, said: “This is the first time that the security and dignity of people after death has been reviewed so comprehensively.
“Inadequate management, governance and processes helped create the environment in which David Fuller was able to offend for so long.”
He said that these “weaknesses” are not confined to where Fuller operated, adding that he found examples from “across the country”.
“I have asked myself whether there could be a recurrence of the appalling crimes committed by David Fuller. – I have concluded that yes, it is entirely possible that such offences could be repeated, particularly in those sectors that lack any form of statutory regulation.”
Sir Jonathan called for a statutory regulation to “protect the security and dignity of people after death”.
After an initial glance, his interim report already called for urgent regulation to safeguard the “security and dignity of the deceased”.
On publication of his final report he describes regulation and oversight of care as “ineffective, and in significant areas completely lacking”.
David Fuller was an electrician who committed sexual offences against at least 100 deceased women and girls in the mortuaries of the Kent and Sussex Hospital and the Tunbridge Wells Hospital. His victims ranged in age from nine to 100.
This first phase of the inquiry found Fuller entered the mortuary 444 times in a single year, “unnoticed and unchecked”.
It was highly critical of the systems in place that allowed this to happen.
His shocking discovery, looking at the broader industry – be it other NHS Trusts or the 4,500 funeral directors in England – is that it could easily have happened elsewhere.
The conditions described suggest someone like Fuller could get away with it again.
BBC director-general Tim Davie has said MasterChef can survive its current scandal as it is “much bigger than individuals” – but the corporation must “make sure we’re in the right place in terms of the culture of the show”.
After the report was published, Wallace, 60, said he was “deeply sorry” for causing any distress, and never set out to “harm or humiliate”.
Torode, 59, said he had “no recollection of the incident” and said he “did not believe that it happened,” and said he was “shocked and saddened by the allegation”.
Mr Davie said the BBC’s leadership team would not “tolerate behaviour that is not in line with our values,” while BBC chair Samir Shah acknowledged there were still pockets within the broadcaster where “powerful individuals” can still “make life for their colleagues unbearable”.
They said several BBC staff members had been dismissed in the last three months, following an independent review into workplace culture.
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Wallace, who was sacked from MasterChef last week, is not included in that count as he was not directly contracted by the corporation, but employed by independent production company Banijay.
The corporation has yet to decide if the unseen MasterChef series – filmed with both Wallace and Torode last year – will be aired or not.
Image: BBC Broadcasting House in Portland Place, London. Pic: Jordan Pettitt/PA
News of the findings in the Gregg Wallace report came just hours before the BBC was deemed to have breached its editorial guidelines by failing to disclose that the child narrator of a Gaza documentary was the son of a Hamas official.
Media watchdog Ofcom subsequently launched its own investigation into the programme.
While the 2024-25 annual report showed a small rise in trust overall for the corporation, Mr Davie acknowledged it had been a year which saw the reputation of the BBC damaged by “serious failings” in the making of the documentary.
The BBC boss acknowledged: “It was important that the BBC took full responsibility for those failings and apologised for them,” and later in response to a question, called the documentary – Gaza: How To Survive A Warzone – “the most challenging editorial issue I’ve had to deal with”.
He went on: “The importance of fair balance reporting, the need for high-quality homegrown programming in the face of massive pressure, I think has never, ever been greater. And I believe my leadership and the team I’ve assembled can really help the BBC thrive in that environment and very competitive environment.”
Image: BBC Director-General Tim Davie. Pic: PA
BBC boss has chair’s ‘full support’
Despite a series of failings in recent months – including livestreaming the controversial Bob Vylan set at Glastonbury last month – Mr Davie insisted he can “lead” the organisation in the right direction.
When asked if he would resign, he replied: “I simply think I’m in a place where I can work to improve dramatically the BBC and lead it in the right way.
“We will make mistakes, but I think as a leadership and myself, I’ve been very clear, and I think we have been decisive.”
He said the organisation was setting a “global standard” for media.
Mr Shah, reiterated his support for Mr Davie.
“Tim Davie and his team, and Tim in particular, has shown very strong leadership throughout all this period and he has my full support.”
The report also revealed its top earners, which saw former Match Of The Day host Gary Lineker top the chart once again.
Meanwhile, Australian children’s cartoon Bluey proved a boon for the broadcaster, and was the most watched show in the US across all genres – with 55 billion minutes viewed.
The top 10 shows watched over Christmas 2024 were also all from the BBC.
Recent annual reviews have been overshadowed by the Huw Edwards scandal and allegations of a toxic environment around flagship show Strictly Come Dancing.
This breaking news story is being updated and more details will be published shortly.
The iconic Sycamore Gap tree “can never be replaced” but its stump is showing signs of life, the National Trust has said, as the two men who felled it face sentencing.
Adam Carruthers, 32, and Daniel Graham, 39, drove 30 miles through a storm from Cumbria to Northumberland on 27 September 2023 before felling the landmark in less than three minutes.
Prosecutors said their “moronic mission” caused more than £620,000 worth of damage to the tree and more than £1,000 worth of damage to Hadrian’s Wall, where it fell.
They took a wedge as a trophy, which has never been recovered, and seemed to revel in the media coverage, exchanging messages and voice notes about the story going “wild” and “viral”.
Footage of the moment the tree was felled was played during the men’s trialat Newcastle Crown Court, where they both denied but were found guilty of two counts of criminal damage.
Image: Adam Carruthers and Daniel Graham. Pic: Northumbria Police/PA
Image: A picture of the tree taken hours before it was felled. Pic: CPS
In a victim impact statement read at their sentencing hearing, National Trust general manager Andrew Poad, said the “iconic tree can never be replaced”.
“While the National Trust has cared for it on behalf of the nation, it belonged to the people,” he wrote.
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“It was a totemic symbol for many; a destination to visit whilst walking Hadrian’s Wall, a place to make memories, take photos in all seasons; but it was also a place of sanctuary – a calming, reflective space that people came to year after year.
“While what was lost cannot be replaced, the stump is showing signs of life, with new shoots emerging at the base – as the decades progress, there is hope that some may grow and establish.”
Mr Poad said the “outpouring of emotion” to the felling was “unprecedented”, with one message from a member of the public described it as “like losing a close family member”.
Pictures were shown in court of a “celebration room” in memory of the tree, including a note which says: “How dare he steal our JOY,” while another reads: “Nature at it’s best over 300 years. Humanity at its worst over one night”.
Mr Poad added: “The overwhelming sense of loss and confusion was felt across the world.
“When it became clear that this was a malicious and deliberate act the question was why anyone would do this to such a beautiful tree in such a special place, it was beyond comprehension.”
Image: The pair were found guilty of criminal damage
Graham has a previous caution for theft after he cut up a “large quantity of logs using a chainsaw”, the court heard.
He also has convictions for violence including battery and public order offences, which were said to be “relationship-based”, while Carruthers has no previous cautions or convictions.
The tree, which had stood for more than 100 years in a dip in the landscape, held a place in popular culture and was featured in the 1991 Kevin Costner film Robin Hood: Prince Of Thieves.
It also formed part of people’s personal lives, as the scene of wedding proposals, ashes being scattered and countless photographs.
A 6ft section of the trunk is now on public display at The Sill: National Landscape Discovery Centre, around two miles from where it once stood, while 49 saplings taken from the tree have been conserved by the National Trust.
Graham and Carruthers, who were once close friends, gave no explanation for why they targeted the tree, and since their arrests, they have fallen out and come to blame each other.
At their trial, Graham claimed Carruthers had a fascination with the sycamore, saying he had described it as “the most famous tree in the world” and spoken of wanting to cut it down, even keeping a piece of string in his workshop that he had used to measure its circumference.
Carruthers denied this and told the court he could not understand the outcry over the story, saying it was “just a tree”.
Prosecutor Richard Wright KC said the pair have now accepted they went on the mission in pre-sentencing reports.
But Carruthers claimed he was “drunk” and didn’t realise what happened until the next day, while Graham said it was “only when the blade made contact with the tree he realised it was serious,” the court heard.
Mr Wright added: “The court can be sure they were sober, prepared and planned to do exactly what they did.”