Tuesday 18 January 2022 / 3:00 PM Pat McFadden

Labour demands investigation into the Government writing off £4.3 billion of fraud

Labour has tabled an urgent question in Parliament to force Ministers to explain why they have written off at least £4.3bn of the funds fraudulently obtained through coronavirus help schemes.

Last week the Government sneaked out the estimate with no press release or statement to Parliament. Today Labour questioned why more was not being done to stop fraudsters getting away with keeping billions of pounds of public money they acquired through the government’s Covid business support schemes.

During the debate, Pat McFadden Labour’s Chief Secretary to the Treasury called on the Treasury to “launch an investigation into how this happened and do more to recover this money from the fraudsters who stole it in the first place.”

Pat McFadden MP, Labour’s Shadow Chief Secretary to the Treasury, said in the House of Commons,:

“This writing off comes as families are facing a cost of living triple whammy of rocketing energy bills, tax increases and a decline in real wages.

“And coming on top of billions spent on crony contracts and billions more lost in loan fraud schemes, these levels of waste destroy any claim the party opposite ever had to careful stewardship of the public finances.”