Fraudulent Pandemic Loans Cost UK Taxpayers £640 Million
- Latest government data details suspected fraud at end of 2022
- Covid loan programs distributed £77 billion to companies
A total of £77.1 billion ($93.4 billion) was lent across the three government-guaranteed programs established in the first half of 2020 to support UK businesses impacted by the pandemic, according to the Thursday report.
Photographer: Darren Staples/BloombergThe UK has paid out £640 million ($774 million) to lenders against pandemic loans to small businesses now suspected of being fraudulent, the latest sign that the government failed to put effective measures in place to protect taxpayer money.
Lenders have flagged £1.1 billion of the £46.6 billion of Bounce Back Loan Scheme as suspected fraud as of the end of 2022, according to data released Tuesday by the British Business Bank. In total, the UK has so far paid out £4.1 billion to lenders to cover defaulting loans from the program, just under 9% of the total.