Recommendations & Conclusions
5 items
1
Conclusion
Fortieth Report - COVID employment supp…
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury and HM Revenue & Customs (HMRC) (collectively the Departments) on the COVID-19 employment support schemes.1
Government response. The government acknowledged that the committee took evidence from HM Treasury and HM Revenue & Customs (HMRC) on the COVID-19 employment support schemes and that this document is their response.
HM Treasury
8
Conclusion
Fortieth Report - COVID employment supp…
Acknowledged
We pressed the Departments on the schemes’ wider impacts including whether the schemes had contributed to the increasing number of business insolvencies and the increasing level of economic inactivity, given that the number of inactive people over 50 increased by almost 500,000 between October to December 2019 and October to …
Government response. The Departments stated that final evaluations would examine the schemes’ impacts on inactivity but that there was no evidence of increasing inactivity being particularly related to the schemes. They added that there had been a legal embargo on creditor insolvencies …
HM Treasury
20
Conclusion
Fortieth Report - COVID employment supp…
Acknowledged
The government’s policy is to pursue deliberately fraudulent behaviour, but not to penalise applicants for honest mistakes when claiming employment support. HMRC can pursue fraudsters through criminal investigations, which can result in cases going 27 C&AG’s Report, paras 3.5, 3.8, 3.31, Figure 10; C&AG’s Report, Implementing employment support schemes in …
Government response. The government's policy is to pursue deliberately fraudulent behaviour, but not to penalise applicants for honest mistakes when claiming employment support and HMRC can raise penalties of up to 100% of any overpayment where it has sufficient evidence of deliberate …
HM Treasury
22
Conclusion
Fortieth Report - COVID employment supp…
Acknowledged
We asked HMRC why the number of prosecutions was so low and why it was not being tougher on those who had made fraudulent claims for employment support. HMRC told us that its approach was broadly the same as it applied to the tax system, where it used civil means …
Government response. HMRC explained that its approach to fraud in the schemes was similar to the tax system, using civil means primarily and reserving criminal investigations for very serious cases. They updated the committee on the number of criminal and civil investigations …
HM Treasury
24
Conclusion
Fortieth Report - COVID employment supp…
Acknowledged
We have stressed throughout our work examining the COVID-19 pandemic the importance of government learning lessons from its preparedness and response. In July 2021, we reported that the Government’s response to the pandemic had been least effective in areas that we have repeatedly reported on, including data quality and data …
Government response. The government has stressed the importance of learning lessons from its preparedness and response to the COVID-19 pandemic. They cited work to build on the UK’s existing international collaborations including strong bilateral and multilateral relationships, to drive greater and broader …
HM Treasury