LONDON, June 23 -- The government of the United Kingdom issued the following news:
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New enforcement unit pursues billions lost to British taxpayers during pandemic
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Recovery efforts intensify as nearly 2,000 company directors banned and 86 criminals prosecuted
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Investigators will be able to search properties, seize assets, and recover money directly from the bank accounts and wages of those who cheated the system
The Public AuthoritiesFraudInvestigation and Enforcement Service (PAFIES) has begun pursuing suspectedfraudsters, armed with the strongest investigatory tools in a generation.
Now, new powers will give investigators the ability to search the premises of suspectedfraudsters and seize money directly fromfraudsters' bank accounts if they do not pay back what they owe. On top of that the window to pursue Covidfraudsters has been doubled from six to twelve years with all new powers becoming available to the governmentfraudsquad this autumn.
The further action comes as measures introduced at the 2024 and 2025 Budgets are calculated to have protected £7.5 billion of public money fromfraudover two years.
Chancellor Rachel Reeves said:
"In contrast to the last government, who left the door open to £10.9 billion of pandemic erafraudand error, we have taken action to protect£7.5 billion of public money.
"My message to those who owe the public purse money is clear - those who profited, will pay."
Satvir Kaur, Parliamentary Secretary in the Cabinet Office said:
"Those who chose to exploit a national crisis to line their own pockets now have nowhere left to hide.
"Ourdecisionto go afterthose who have cheated the systemas part of our wider crackdown onfraudagainst public services has already helped save £7.5 billion. Wewill use every tool at our disposal to protect public money and fund the frontline services the British people rely on."
The crackdown comes as the Chancellor announced the government's response to the Covid CounterFraudCommissioner's final report, which laid bare the full scale of pandemicfraud. £10.9 billion- money that should have funded the NHS and our schools - was initially lost tofraud.
Nearly 2,000 company directors have already been banned and 86 criminals prosecuted to date.
Powers from the PAFER Act 2025 extended the limitation period for civil claims relating to Covidfraudagainst public authorities from six years to twelve, meaning that suspectedfraudsters can be pursued until 2032.
The Act will also give the governmentfraudsquad powerful new tools to tacklefraud, including enhanced investigation, search-and-seizure, and information-gathering powers, with the authority to compel information from third parties.
It also introduces civil financial penalties to accelerate enforcement and enables the direct recovery offraud-related debts from earnings and bank accounts following a PSFA investigation.
Those who did not respond to Voluntary Repayment Scheme last year will now face the full force of the new powers in the autumn.
A Covidfraudreporting website, set up in September last year, has received over 1,000 reports of suspectedfraud.
Contact Information
HMT Press Office
020 7270 5238
pressoffice@hmtreasury.gov.uk
Disclaimer: Curated by HT Syndication.
