Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Despite recognising these limitations and uncertainty in its current estimates, the Department does not believe...
Conclusion
Despite recognising these limitations and uncertainty in its current estimates, the Department does not believe that its grant funding has been subject to significant fraud.40 It suggests that fraud will ultimately range between 1% and 2%, which it would consider as ‘normal’ and consistent with its expectations.41 Conversely, it suggests that it has been more surprised by grant schemes impacted by error where local authorities have made payments to ineligible businesses or have overpaid to eligible businesses.42 Whether local authority administered grants reached the right businesses
Government Response
Not Addressed
HM Government
Not Addressed
1.4 From an allocation of £26.9 billion, £22.6 billion has been paid to businesses through over 4.5 million awards. Of the £4.3 billion difference, over £2 billion underspent has been returned by local authorities, with the balance expected in the coming months now that all schemes have closed. In addition, irregular payments have occurred. The initial estimate of which was included in the 2020-21 accounts, with a central point of 8.9%. Further details on the limitations of the estimate are included within the accounts. Over £4 million has been voluntarily repaid from large companies and debt recovery of irregular payments due to error, fraud, or non-compliance is underway. Full assurance work is underway and expected to be completed by the end of the calendar year with first estimates reflected in 22-23 accounts. Further information is included in the accompanying letter to recommendation 3.