The UK Treasury has launched a new three-month repayment window, giving individuals and businesses the opportunity to return Covid support funds they were not entitled to – or no longer need – without facing penalties or further scrutiny.
Described as a “use it or lose it” offer, this limited window is intended as a final chance to come forward voluntarily before stricter enforcement measures and tougher sanctions, including prosecution, are introduced in the coming year. Whether the funds were received in error or circumstances have changed, this initiative provides a discreet route to set things right.
The Scale of Suspected Covid Support Scheme Fraud
Government figures reveal the significant extent of suspected fraud linked to pandemic-era financial support.
In the Bounce Back Loan Scheme (BBLS) alone, lenders have flagged £1.88 billion of the £46.48 billion issued as potentially fraudulent. In total, fraud across both the BBLS and the Coronavirus Business Interruption Loan Scheme (CBILS) is estimated at £1.93 billion.
Meanwhile, the Coronavirus Job Retention Scheme (CJRS), more commonly known as the furlough scheme, may have cost the Treasury up to £3.5 billion due to fraud and errors in claims submitted.
These figures underline the government’s growing focus on recovery efforts and enforcement, as it moves to tighten oversight of Covid-era financial aid.
Details of the voluntary repayment scheme
While exact start and end dates for the amnesty have yet to be confirmed, the repayment scheme will cover all major Covid support initiatives, including:
- Covid-19 Business Loan Guarantee Schemes, e.g,. Bounce Back Loans;
- Coronavirus Job Retention Scheme (CJRS);
- Self-Employed Income Support Scheme (SEISS);
- Eat Out to Help Out Scheme;
- Cultural Recovery Fund;
- Grants from the Department for Health & Social Care; and
- Benefits such as Universal Credit.
How to Make a Repayment
Individuals with Bounce Back Loans will need to contact their lender directly to arrange repayment. For other Covid support schemes, repayments can be made following the instructions on the government’s Voluntary Covid-19 Repayment page or by emailing voluntaryrepayment@cabinetoffice.gov.uk. A response will be provided within five workings days, outlining next steps.
