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COVID schemes fraud and error cost taxpayers £11bn

Sarah Taylor by Sarah Taylor
December 9, 2025
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COVID schemes fraud and error cost taxpayers £11bn
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COVID-19 Fraud and error cost the taxpayer nearly £11bn, a government watchdog has found.

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Pandemic support programmes such as furlough, bounce-back loans, support grants and Eat Out to Help Out led to £10.9bn in fraud and error, COVID Counter-Fraud Commissioner Tom Hayhoe’s final report has concluded.

Lack of government data to target economic support made it “easy” for fraudsters to claim under more than one scheme and secure dual funding, the report said.

An earlier report from Mr Hayhoe for the Treasury in June found that failed personal protective equipment (PPE) contracts during the pandemic cost the British taxpayer £1.4 billion, with £762 million spent on unused protection equipment unlikely ever to be recovered.

Factors behind the lost money had included government over-ordering of PPE, and delays in checking it.

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