Covid-19: Financial Support

Iqbal Mohamed Excerpts

Thursday 15th January 2026 Commons Chamber

[Esther McVey (Tatton) (Con)]

I thank the hon. Member for Stratford-on-Avon (Manuela Perteghella) for securing the debate and the Backbench Business Committee for granting it.

There is no doubt that the hardship affecting families, businesses and communities as a result of covid-19 policies is ongoing. The depth of suffering is hard to read about. People have been pushed to their limits, mentally and financially, and have had to endure indignity and injustice through no fault of their own. I hope that we can now all agree that it should never have happened. It is something that we never want to see happen again.

The various Government financial support schemes that were set up helped many people, but for the forgotten businesses and individuals who, for one bureaucratic reason or another, were deemed ineligible, the situation was patently unfair and unjust. Some 3.8 million UK taxpayers were excluded from support, while the rest of the working population were paid to stay at home. Why were they excluded? The reasons were arbitrary. Financial support was not forthcoming if a person was newly self-employed, a PAYE freelancer, a director paid in dividends, starting a new job—the list goes on. The rules were random and confusing, and they pushed so many people into desperate situations.

Sadly, we should not have been surprised that that happened. Although some marvelled at the speedy roll-out of the Government’s schemes, the reality was that they were patchy, poorly thought out and full of gaps—of course they were. How could we ever expect to shut down our society and economy and be able to cover the gigantic financial cost of doing so while ensuring that every person was properly looked after? It was unrealistic —an unprecedented state intervention that was doomed to fail.

I totally agree with Members present who are pushing for assurances that that will never happen again, but if we cannot look back with honesty and clarity about what was done, we are doomed to make the same mistakes again. Lockdown was the mistake from which all that injustice and suffering flowed. It was an unknown and unevidenced imposition that should never have been inflicted upon the British people. Many experts predicted from the start that it would cause misery and, horrifically, cost hundreds of thousands of lives through unintended but very real collateral damage.

[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

I thank the right hon. Member for her powerful speech. Our opinions on lockdown may differ, but does she agree that, had we not gone into lockdown, many more thousands of people would have lost their lives?

[Esther McVey]

I do not believe the evidence proves that. We can look to other parts of the world where that was not the case.

This policy had unwavering and enthusiastic support from across the House, with just a few of us in this House —too few—raising valid concerns, but we were shut down. It should be obvious that some people cannot be damaged in the name of protecting others with interventions such as lockdowns that we do not even know will work. The moral mathematics never added up.

And now we must live with the consequences of what we did. We spent in the region of £400 billion on the covid-19 response—a vast sum that will be clawed back through increased taxation and hardship for generations to come. Of course, the Conservative party had to put up taxes to pay for that £400 billion, and it was voted for by pretty much every Member in the House. For me, such a statist, socialist intervention would never work, and that is proving to be the case.

Those businesses that did manage to survive after everything that was thrown at them in the name of covid are now having to face more gloom and doom from this socialist Government in charge of our country, with their two tax-rising Budgets and their removal of business rates relief without understanding it—

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[Iqbal Mohamed (Dewsbury and Batley) (Ind)]

I refer Members to my entry in the Register of Members’ Financial Interests. I thank the hon. Member for Stratford-on-Avon (Manuela Perteghella) for securing this important debate. The covid pandemic was an unprecedented crisis that placed immense strain on ruling parties worldwide. Few, if any, could dispute that rapid, decisive intervention was necessary to prevent an utterly catastrophic collapse in the British economy. However, acknowledging the scale of the challenge does not absolve the Government of responsibility for how that money was spent, how their support schemes were designed and implemented, or how recklessly public funds were safeguarded.

While some degree of waste and fraud is inevitable in a crisis, the scale of loss during the pandemic was not inevitable, but the result of systemic failure within the UK Government. That failure remains unchecked under the current Labour Administration. The Office for Budget Responsibility estimates that covid support measures totalled somewhere between £169 billion and £192 billion. That included a variety of schemes, from furloughing individuals to protect them from unemployment to grants and loans intended to help businesses stay solvent.

However, the support system simply did not work for nearly 3.8 million freelancers and self-employed workers. Many were excluded altogether from financial assistance through rigid eligibility criteria, outdated data or the blunt distinction drawn between modern forms of work. That said, much of the covid-19 spending—for those to whom it was available—undoubtedly saved jobs and prevented mass insolvency. Departments and public bodies were forced into reactive policymaking, scrambling to design schemes in real time, often without effective oversight or proper safeguards against abuse. Nowhere was that more evident than in the scale of fraud committed against the Government support schemes.

According to the independent covid counter-fraud commissioner’s final report, published last month, some £10.9 billion of taxpayer money was lost to fraud and error across covid support schemes. Of that sum, only £1.8 billion has been recovered so far. The remainder, as the report makes clear, is likely beyond recovery, with fraud prevention efforts identified as falling short across Government. The causes of this failure are well documented in the aforementioned report, but one particular point that stuck out to me was that banks were instructed to suspend their usual due diligence, despite voicing explicit warnings about heightened risks of fraud.

Better design was possible. Britain appears to stand alone in the G7 on the scale of fraud experienced during covid. Other countries managed to move quickly while still embedding stronger checks. The lesson is not that speed and scrutiny are incompatible, but that the Government of the time chose not to prioritise the latter. That so few consequences have followed these failures only deepens public cynicism with democratic political processes. Keir Starmer was elected on a—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We do not refer to the Prime Minister by his name, but as the Prime Minister.

[Iqbal Mohamed]

My apologies, Madam Deputy Speaker. The Prime Minister was elected on a platform that pledged to clean up politics and crack down on those who defraud the public purse. However, instead of introducing stiffer penalties for individuals and corporations that are illegally profiteering from a crisis, the Government are spearheading punitive legislation on alleged welfare fraud, criminalising innocent benefit claimants.

In conclusion, what unites all of what I have spoken about, as it does Members from all parts of the House, is that fraud, waste and cronyism are a failure of governance and a failure to adequately plan and properly design systems to protect the public purse. If we are serious about restoring—

[Madam Deputy Speaker (Caroline Nokes)]

Order. I call Olly Glover.