Select Committee · Public Accounts Committee

COVID-19 Employment Support Schemes

Status: Closed Opened: 14 Oct 2022 Closed: 1 Jun 2023 14 recommendations 12 conclusions 1 report

In March 2020 the government announced two schemes to support employment during the pandemic: the Coronavirus Job Retention or “furlough” scheme, and the Self-Employment Income Support Scheme (SEISS). In total, the two schemes cost close to £100 billion of taxpayers’ money. A report by the National Audit Office has found that the employment support schemes …

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Reports

1 report
Title HC No. Published Items Response
Fortieth Report - COVID employment support schemes HC 810 8 Mar 2023 26 Responded

Recommendations & Conclusions

3 items
5 Recommendation Fortieth Report - COVID employment supp… Rejected

We are concerned that in the absence of effective criminal and civil sanctions there is...

We are concerned that in the absence of effective criminal and civil sanctions there is little incentive for those who overclaimed COVID-19 employment support to make repayments. Despite the billions of pounds lost in error and fraud, HMRC has taken little action to punish culprits. It asserts that it limits …

Government response. The government disagrees with the recommendation and states that HMRC will continue its compliance activity on COVID-19 schemes and consider whether penalties can be charged within the legal framework but is unable to pre-determine case outcomes.
HM Treasury
21 Conclusion Fortieth Report - COVID employment supp… Rejected

We have previously expressed concern about the small number of criminal prosecutions for tax fraud.35...

We have previously expressed concern about the small number of criminal prosecutions for tax fraud.35 As part of our inquiry into fraud and error across COVID-19 support schemes, we were also concerned that inconsistencies between Departments in their approaches to the consequences of fraud and error for different groups.36 We …

Government response. The government disagrees with the Committee’s recommendation and states that HMRC will continue its compliance activity on COVID-19 schemes and consider whether penalties can be charged within the legal framework but is unable to pre-determine case outcomes.
HM Treasury
23 Recommendation Fortieth Report - COVID employment supp… Rejected

While HMRC had by October 2022 exceeded its target to open 30,000 civil cases on...

While HMRC had by October 2022 exceeded its target to open 30,000 civil cases on the employment support schemes during 2020–21 to 2022–23, the level of penalties it has issued has been small compared to both the overpayments it has identified and the billions of pounds of error and fraud. …

Government response. HMRC disagrees and states it will continue its compliance activity on COVID-19 schemes and consider whether penalties can be charged within the legal framework. Penalties can only be applied where it is lawful for HMRC to issue them, and there …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
17 Nov 2022 Beth Russell · HM Treasury, Janet Alexander · HM Revenue and Customs, Jim Harra · HMRC View ↗

Correspondence

1 letter
DateDirectionTitle
29 Nov 2022 Correspondence from Janet Alexander, Director Compliance Operations Directorate…