Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Acknowledged
Department demonstrates progress in fraud response, updating risk assessment with lessons learned.
Conclusion
The Department has made progress in its fraud response. The Fraud Risk Assessment has been updated, although this identified additional fraud risks which were not considered at the point the scheme was launched.30 Notably, the Department told us about the improvements which have been made to the ongoing Recovery Loan Scheme as a result of learning from the Bounce Back Loan Scheme, such as permissions for sharing data, data systems and governance, and bulk objections for dissolving companies with an outstanding loan.31
Government Response Summary
The government agrees with the Committee's recommendation and highlights the development of a Bounce Back Loan Scheme (BBLS) Counter Fraud strategy, quarterly data publications on COVID-19 debt schemes, and a series of pilots to test the case for additional recovery activities.
Government Response
Acknowledged
HM Government
Acknowledged
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The Department for Business and Trade has developed an overarching Bounce Back Loan Scheme (BBLS) Counter Fraud strategy which is driving an extensive programme of activity in DBT, BBB and wider delivery partners. DBT is considering whether a version of this should be made public in due course. 3.3 The British Business Bank (BBB) publishes data on the COVID-19 debt schemes on a quarterly basis. This is a simultaneous publication inclusive of a full lender list and across the debt scheme portfolios. The most recent publication was made on 19 May 2023. The data points reported include the following information for each lender: • Life event values: This data provides an overview of the overall performance of each lender’s BBLS loan book, for each of the loan states (arrears, defaults, claimed or settled). • Suspected fraud analysis, including: i) drawn loan amount; ii) total values of suspected fraud; iii) value of claims where the lender has stated that the reason for the claim is due to fraud; and life event values for suspected fraud facilities (for example, suspected fraud for loans in arrears, in defaulted loans, in claimed loans or settled loans) 3.4 Publication of this data is an important part of the government’s ongoing commitment to transparency in relation to the COVID-19 debt schemes. This work is supported by the Public Sector Fraud Authority, who have led the development of a sophisticated analytics programme to better understand the level and types of fraud committed against the scheme. 3.5 The department has commissioned a series of pilots to test the case for additional recovery activities where wrongdoing is suspected, starting with an involuntary liquidation pilot, an enforcement pilot and a pilot involving a private debt management specialist. The department has already seen success from this programme of work and is planning the next steps which will be taken through our established governance mechanisms. In doing so, the