‘Pay now or face the consequences’ – last chance to return wrongly‑claimed Covid cash
A new Covid Voluntary Repayment Scheme, launched by the UK Government on Friday 12 September, gives a “no questions asked” window until December 2025 for anyone to return pandemic‑era funds they were not entitled to, or no longer needed.
The scheme covers all Covid support programmes – including furlough, bounce‑back loans, business support grants and Eat Out to Help Out – and applies to individuals as well as companies.
Undercover checks and tougher powers ahead
Covid Counter‑Fraud Commissioner Tom Hayhoe said the offer is a final chance to “wipe the slate clean” before new investigatory powers come into force next year.
“Pay now, clear your conscience, or face the consequences,” he warned. “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 taxpayer‑funded help could face prosecution, disqualification, or prison. The digital trail is forever – the time to settle is now.”
From 2026, the government will have expanded powers to investigate and prosecute Covid fraud, shut down businesses, and ban directors. Thousands could face court action, with the most serious offenders jailed.
Public urged to report suspected fraud
Alongside the repayment scheme, a new Covid fraud reporting website has been launched so members of the public can flag suspected wrongdoing.
The Treasury says more than £10 billion was lost to fraud, flawed contracts and waste during the pandemic. Around £1.54 billion has already been recovered, but ministers want to claw back far more before the deadline.
‘Extraordinary circumstances’
Mr Hayhoe said many small businesses made honest mistakes in the chaos of the pandemic, but some knowingly took money they shouldn’t have.
“I’ve spoken to hundreds of small business owners who’ve told me they wanted help but the rules kept changing and advice was confusing. Some took bad decisions at the time that are eating away at them – it’s keeping them awake at night. This scheme gives them the chance to put it right, without lengthy investigations or public shame.”
How to repay or report
- Details of the Covid Voluntary Repayment Scheme are available on the UK Government website.
- Suspected Covid fraud can be reported via the Covid fraud reporting service.
The scheme runs until 31 December 2025. After that, the “no questions asked” offer will be withdrawn and tougher sanctions will apply.
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