Coronavirus Grants: Fraud

Debate between Viscount Younger of Leckie and Lord Carlile of Berriew

Tuesday 25th January 2022 Lords Chamber

[Viscount Younger of Leckie (Con)]

The noble Lord’s question is focused on HMRC, but I can say that the expected losses to error and fraud in 2021 were £5.8 billion, and expected losses for 2021-22 will be published in due course. But a lot of work is going on in terms of recovery, and the expected recovery by HMRC is estimated to be between £1.3 billion and £1.5 billion.

[Lord Carlile of Berriew (CB)]

My Lords, did the Government anticipate the potential use of existing ready-made off-the-shelf companies as instruments of fraud? Is it yes or no?

[Viscount Younger of Leckie (Con)]

I think the answer has to be no. We had to move particularly quickly in very difficult circumstances. Of course, there is always a risk of fraud—all fraud is unacceptable, but there was a risk because we had to move quickly. As I say, there is a lot of work and, particularly from HMRC’s point of view, in the months and years ahead there is big scope to recover.