MPs criticise HMRC’s furlough fraud approach

MP’s have criticised HMRC’s approach to furlough fraud after the Public Accounts Committee (PAC) found that it had only recovered a fraction of the money wrongly paid to people who remained in work.

The PAC found that an estimated £2.3bn was paid to employers claiming furlough for staff who continued to work and HMRC has only managed to recover £640k so far, 0.03% of the total estimate.

The committee stated that gaps and lags in HMRC’s data continued to drive problems with HMRC providing “excessive” support to some while others who did need it were ineligible under tax rules.

The report found that money was paid to people who saw no loss of income when several million who needed it received no support.

Furthermore, the report found that around £4.5bn was lost to fraud and error in job support schemes.

Dame Meg Hillier MP, chair of the committee, said “Bad actors in British business are running rings around the Revenue. Perhaps some of the same companies that were complaining about even the minimal levels of transparency over billions and billions that were paid out in order to save jobs in this country but are now just lost to the public purse, likely forever.

“While money that genuinely saved jobs and households got out admirably quickly, the weak recovery effort will fail to deter potential future criminals. Too many companies claimed what they shouldn’t have and now won’t give it back.”