Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Not Addressed
Reduced BBLS lender checks for 1.5 million loans increased taxpayer fraud risk
Conclusion
The BBLS was open for applications from 4 May 2020 to 31 March 2021, and in that time 1.5 million loans were issued, to a total value of £47.4 billion. The BBLS was designed to reduce the time taken to pay out the loans, in part by reducing the checks which lenders were required to do. This included removing credit and affordability checks, and accepting self-certification by borrowers, rather than requiring any verification of application information. This resulted in increased risk to the taxpayer, which was acknowledged at the time.40
Government Response Summary
The Department's responsibilities also include the ongoing management of the Bounce Back Loan Scheme, which was set up as part of a suite of measures to provide support to businesses during the COVID-19 pandemic.
Government Response
Not Addressed
HM Government
Not Addressed
The Department’s responsibilities also include the ongoing management of the Bounce Back Loan Scheme, which was set up as part of a suite of measures to provide support to businesses during the COVID-19 pandemic.