A new independent review has exposed the scale of financial damage caused by fraudulent claims during Britain’s COVID-19 response. According to reporting from Reuters on Tuesday, the country lost 10.9 billion pounds in public money after emergency schemes launched during the pandemic failed to include basic protections against abuse.
The findings come from the COVID Counter Fraud Commissioner, who examined programmes such as Bounce Back Loans and Eat Out to Help Out. Both initiatives were introduced by the former Conservative government to support the economy. However, the report says these efforts moved fast and overlooked essential safeguards that could have stopped criminal exploitation.
Finance minister Rachel Reeves said the losses represent money that should have supported public services and helped families still recovering from the crisis. She described the situation as the result of leaving “the front door wide open to fraud.” The government told Reuters it has recovered only about 400 million pounds so far. Officials noted that controls improved later in the pandemic but came too late to prevent the damage.
Accountability failures and weak data controls
The review, written by Tom Hayhoe, a former leader in the health service, highlighted several systemic failures. Hayhoe pointed to poor-quality data, weak accountability and flawed contracting practices as the main reasons behind the multibillion-pound hit. He said these gaps created ideal conditions for misuse during a moment of intense pressure and rapid spending.
Britain recorded more than 230,000 COVID-related deaths, a toll comparable to the United States and Italy. The country continues to navigate the economic aftershocks of the pandemic. A separate national inquiry ordered in 2021 delivered a harsh assessment of then-prime minister Boris Johnson’s leadership. As Reuters reported, that inquiry criticised delays in decision-making and noted that Johnson’s office broke restrictions imposed on the public. It also rebuked his former adviser Dominic Cummings for internal dysfunction during the height of the crisis.