ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
Intelligence, Insight and community for responsible professionals in credit

£3.5bn in furlough cash wrongly paid out, as HMRC investigates fraudulent claims

Some 8,000 calls have been made to report non-compliance on the furlough scheme, as 27,000 high risk claims are being probed by HMRC.

Up to £3.5bn has been paid out by the government in error or due to fraudulent claims through the furlough scheme.


HMRC said: “We have a range of measures in place to protect the schemes against abuse from organised criminal attacks, inflated claims and other non-compliance.”


The government body explained that it was not legally allowed to carry out investigations into suspected furlough fraud until the Finance Bill was granted Royal Assent. Now that it has, HMRC has “started post-payment investigations in depth”.


HMRC’s top civil servant, Jim Harra, told the Public Accounts Committee that his staff believe between five percent and 10% of furlough money has been granted incorrectly.


Harra also mentioned that he is aware of an academic study that suggests this figure might be higher.


Harra said: “We are not going to set about trying to find employers who have made legitimate mistakes in compiling their claims, because this is something new that everybody had to get to grips with at a very difficult time.


“We will expect employers to check their claims and repay any excess amounts, but we will be focused on tackling abuse and fraud.”


The latest figures show that the government has paid out £35.4bn to cover up to 80% of people’s wages through the furlough scheme.


Reward Strategy, Credit Strategy’s sister title today hosted it’s Payroll and Reward Conference where former cabinet minister David Lidington explained that the chancellor was very reluctant to continue the furlough scheme.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees



FCA to streamline its decision-making processes

FCA to streamline its decision-making processes

Language changes needed to support diversity, report finds

Language changes needed to support diversity, report finds

Tesco Bank to close all personal current accounts

Tesco Bank to close all personal current accounts

Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback – an online news and information service for the UK’s commercial and consumer credit industry. is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group