Fraud and error linked to financial support programmes during the coronavirus pandemic cost taxpayers £10.9 billion, a report has found.
The authors warned that only £1.8 billion has been recovered and said “much of the shortfall is now beyond recovery”.
The final report by the Covid counter fraud commissioner, Tom Hayhoe, found that many schemes, including Eat Out To Help Out and Bounce Back Loans, were rolled out quickly with significant risks.
Mr Hayhoe, who was tasked by Chancellor Rachel Reeves with trying to recover the public money lost to fraud, said in his report that controls were “inadequate” and only improved later in the pandemic.
The Conservative government, which was led by Boris Johnson as prime minister during most of the pandemic, introduced policies designed to support many UK firms and workers amid the impact of the Covid-19 pandemic, such as wage furlough, bounce-back loans and the Eat Out To Help Out programme.
The report said there are still areas where it is “worthwhile” investing to recover more money paid out incorrectly, recommending that work continues.
Ms Reeves said: “Leaving the front door wide open to fraud has cost the British taxpayer £10.9 billion, money that should have been funding our public services, supporting families, and strengthening our economy.
“We have started returning this money to the British people and we will leave no stone unturned in rooting out the fraudsters who profited from pandemic negligence.”