• About us
  • ISSN 3049-978X
  • Authors and editors
NEWSLETTER SIGN UP
Central Bylines
Advertisement
  • News
    • Brexit
    • Education
    • Environment
    • Health
    • Transport
    • World
  • Politics
  • Opinion
  • Lifestyle
    • Food
    • Music
    • Poetry
    • Sport
  • Business
    • Economy
    • Technology
  • Region
    • East Midlands
    • West Midlands
    • A Cotswold Diary
No Result
View All Result
  • News
    • Brexit
    • Education
    • Environment
    • Health
    • Transport
    • World
  • Politics
  • Opinion
  • Lifestyle
    • Food
    • Music
    • Poetry
    • Sport
  • Business
    • Economy
    • Technology
  • Region
    • East Midlands
    • West Midlands
    • A Cotswold Diary
No Result
View All Result
Central Bylines
Home Politics

Fraud and government schemes

Penny Lane asks whether government time would be better spent tackling fraud in business support schemes rather than in the benefits system

Penny Lane by Penny Lane
07-06-2022 08:20 - Updated on 29-06-2022 11:01
in Politics
Reading Time: 4 mins read
A A
Fraud and government schemes

Image licensed by Shutterstock - photographer Olivier le Moal

Share on Bluesky

The latest assertive and headline-grabbing thinking from Boris Johnson’s ministerial team arrived in the report Fighting Fraud in the Benefit System, published 19 May 2022. This new plan grants the Department of Work and Pensions (DWP) a whole raft of new powers including (though not limited to) the ability to arrest people, execute warrants, conduct searches and seize evidence. The legislation is set to save taxpayers £2bn over the next three years. 

Sorting out the undeserving poor

Therese Coffey, work and pensions secretary, explains: “Thousands of trained specialists, combined with targeted new tools and powers, will mean we can keep up with fraud in today’s digital age and prevent, detect and deter those who would try to cheat the system.”

The report represents another heart-warming cause for the Tory-faithful to throw their weight behind: sorting out the undeserving poor. And a good distraction from partygate investigations and questions over who did what and when, and who got fined. 

It’s unclear how this policy will dovetail with the drive announced by Jacob Rees-Mogg to reduce the number of civil servants by 65,000 by 2024. But I am confident government ministers talk to each other and co-ordinate plans to accommodate different ambitions.

Failure to go after fraud within businesses

The policy also does not dovetail with the government’s somewhat different approach towards fraud in the Covid business grants and bounce back loans system.

Approximately 1.6 million ‘bounce back’ loans were approved between April 2020 and May 2021, amounting to £47bn. Over the same period there were also approximately 110,000 Covid business interruption loans totalling £26bn.

For the vast majority, these payments provided a lifeline and crucial help, which meant their businesses could survive. But details continue to emerge about elementary flaws which enabled fraud. 

There were initially no credit checks on applicants, and they were able to self-certify their own applications. At times, loans were given to companies that had already been dissolved. And over 1,500 companies received bounce back loans despite the fact that they set up business after the pandemic had begun. 

In December 2021, the chief executive of the National Audit Office summed it up, stating:

“[The] government prioritised getting Bounce Back Loans to small businesses quickly but failed to put adequate fraud prevention measures in place. One impact of these decisions is apparent in the high levels of estimated fraud.”

Money lost to the taxpayer

It is estimated that £4.9bn was lost to the public purse to fraud within the bounce back loan scheme. The cost of fraud within the loan scheme is more than double the amount from welfare benefit recipients.

In view of this, perhaps the “thousands of trained specialists, combined with targeted new tools and powers” would be better employed chasing the real fraudsters. It would be an arguably better return on investment too. 

But it seems that once again, people dependent on benefit welfare payments are an easier target for the Conservatives. Always best to follow the ideology. 

Previous Post

Top Gun, I feel the need…..

Next Post

Johnson can’t govern so he lies instead

Penny Lane

Penny Lane

Related Posts

image by House of Commons. Attribution 3.0 Unported (CC BY 3.0)
Politics

Did Andy Burnham just ditch First-past-the-post?

by Cliff Mitchell
7 October 2026
young protestors in London wearing purple holding up placards with one saying "Make Change Happen!"
Politics

Why young voices are missing from political debate

by Hania Orszulik
6 October 2026
West Midlands projected over a generic map of the UK
Human interest

The two faces of the West Midlands unveiled

by Trevor Russel
28 September 2026
Man with a bin on his head: Count Binface, and picture of the sky around him.
Opinion

Count Binface: why Britain’s ‘joke’ election candidates deserve to be taken seriously

by The Conversation
13 August 2026
person holds a globe that is burning
Environment

Council row about climate change teaching in school

by Central Bylines Reports
30 July 2026
Next Post
Statue of a bishop

Johnson can’t govern so he lies instead

PLEASE SUPPORT OUR CROWDFUNDER

BROWSE BY TAGS

AI Art Back in the News Blue Plaques brexit Christmas Climate change Community Conservative Party Cost of living crisis Covid D-Day Dance election Energy Entertainment equality Farming Gaza General Election Green Party health history housing Human Rights immigration Johnson Labour Latest Levelling up Lib Dems mental health My Little Town nature Poetry Police pollution quiz Reform Reform UK Rwanda social media Ukraine Conflict Voting Whistleblower
Central Bylines

We are a not-for-profit citizen journalism publication. Our aim is to publish well-written, fact-based articles and opinion pieces on subjects that are of interest to people in Central England and beyond.

Central Bylines is a trading brand of Bylines Networks Limited which is separate to, but allied with, Byline Times.

Learn more about us

No Result
View All Result
  • About us
  • Authors and editors
  • Complaints
  • Donate
  • Letters
  • The Lost Opportunities List
  • Network Map
  • Network RSS Feeds
  • Submission Guidelines
  • Download the Bylines Network App

© 2020-2026 Central Bylines. Powerful Citizen Journalism. ISSN 3049-978X

No Result
View All Result
  • News
    • Brexit
    • Education
    • Environment
    • Health
    • Transport
    • World
  • Politics
  • Opinion
  • Lifestyle
    • Food
    • Music
    • Poetry
    • Sport
  • Business
    • Economy
    • Technology
  • Region
  • Authors and editors

Newsletter sign up

CROWDFUNDER

© 2020-2026 Central Bylines. Powerful Citizen Journalism. ISSN 3049-978X