Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Department identified two potential fraud incidents totaling £2.2 million in COVID-19 loans
Recommendation
As at December 2024, the Department had identified two possible incidents of fraud among its borrowers, relating to loans valued at £2.2 million.47 It told us that it considered the level of fraud in its COVID–19 loans to be relatively low, compared to other COVID–19 schemes, but that it was in no way complacent about, and was very focused on, this fraud risk.48 Engagement with professional sport
Government Response Summary
The government agrees to develop a comprehensive borrower engagement plan by November 2025 that builds on existing strategies, guided by core principles and medium-term strategies that link key borrower and loan characteristics to appropriate engagement methods.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: November 2025 5.2 Every borrower is treated in line with the department's loan book objectives. The department maintains regular communication with its borrowers through its Loan Agents. The department has tailored its approach to different borrowers to reflect their individual circumstances including the size of their loan and therefore impact on the Exchequer. 5.3 In line with the NAO’s recommendation C (page 14), the department is developing a comprehensive borrower engagement plan that builds on existing strategies already implemented by Loan Agents. The plan will be guided by core principles that define the department’s approach to borrower engagement and will help to ensure decisions are applied appropriately across the loan portfolio. It will also include medium-term strategies that link key borrower and loan characteristics to appropriate engagement methods, aligned with the loan book’s current priorities and operating model.