Amnesty scheme launched for Covid loan debtors

Businesses and individuals who still owe Covid scheme money to the Treasury have been given a time-limited opportunity to pay it back before tougher sanctions apply.

The voluntary repayment scheme gives them until December this year to return pandemic scheme cash – no questions asked.

The move comes as the government continues to do everything in its power to recoup money lost to Covid fraud.

It is aimed at businesses and directors that were not entitled to or did not need money given to them after applying for it during the pandemic.

Announcing the move, The Treasury said: “Individuals who don’t take this last chance to come forward and repay any outstanding money could face prosecution when the government receives additional investigatory powers next year.”

A Covid fraud reporting website is also being launched to allow members of the public to report suspected fraud.

Covid Counter-Fraud Commissioner Tom Hayhoe said: “Our message to those who still owe Covid era money is simple – pay now, clear your conscience, or face the consequences.

“This money belongs in communities, the NHS, police and Armed Forces. Those who don’t take up this straightforward offer and have knowingly, wrongly claimed tax-payer-funded help could face prosecution, disqualification, or prison.

“The digital trail is forever, so the time to settle is now – before new investigatory powers and tougher rules come into force.”

All Covid schemes, including loans, grants, social security and tax benefits fall under the voluntary repayment scheme.

More than £10billion was lost to pandemic fraud, flawed contracts and waste under the previous government’s mismanagement of pandemic era procurement and schemes. £1.54bn has already been recovered through existing efforts.

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