UK Inquiry Tracker

COVID-19 Employment Support Schemes

Public Accounts Committee Closed Inquiry

Opened: 14 Oct 2022 Closed: 1 Jun 2023 Parliament page

In March 2020 the government announced two schemes to support employment during the pandemic: the Coronavirus Job Retention or “furlough” scheme, and the Self-Employment Income Support Scheme (SEISS). In total, the two schemes cost close to £100 billion of taxpayers’ money. A report by the National Audit Office has found … Read more In March 2020 the government announced two schemes to support employment during the pandemic: the Coronavirus Job Retention or “furlough” scheme, and the Self-Employment Income Support Scheme (SEISS). In total, the two schemes cost close to £100 billion of taxpayers’ money. A report by the National Audit Office has found that the employment support schemes achieved their primary aim of protecting jobs and businesses during the pandemic - with unemployment peaking at just over 5% - and that the actual costs of the schemes fell well below departmental estimates. However, the NAO noted that “Designing schemes at speed, coupled with the inherent uncertainty over the course of the pandemic, meant that the schemes would inevitably have flaws.” The NAO found that “it is likely that several billion pounds have been paid to claimants who saw their incomes increase during the period. The Committee will question senior officials at HMRC on whether the schemes achieved their objectives to support incomes and the labour market and reached those previously excluded from the schemes; how the Departments managed the delivery of the schemes through their later iterations, including attempts to improve the value for money of the schemes by making them more targeted while managing the risk of error and fraud; and how HMRC has estimated the level of error and fraud and undertaken compliance work to detect error and fraud. Commenting on the NAO report on Covid 19 employment support that underlies this inquiry and call for evidence, PAC Chair Dame Meg Hillier MP said: “Government's COVID employment support schemes protected millions of people and businesses from hardship during the pandemic. While it established this essential support quickly, billions of pounds were wasted through fraudulent claims and loose controls. Government was too slow to act in response. “HM Revenue & Customs must get a grip on how it measures and tackles fraud and error. Particularly at a time of constrained public finances, this could go a long way to supporting millions of citizens and essential public services.” If you have evidence on the issues raised in this inquiry, please submit it here by November 4 at 18:00. Show less

14 Recommendations

12 Conclusions

1 Report

1 Oral session

1 Letter

1 Event

Activity timeline 5 events

30 May
2023

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Fortieth report from Session 2022-23

8 Mar
2023

Report published

Fortieth Report - COVID employment support schemes

29 Nov
2022

Correspondence

Correspondence from Janet Alexander, Director Compliance Operations Directorate, HMRC, re HMRC Covid-19 Employment Support Schemes – Public…

17 Nov
2022

Oral evidence

COVID-19 Employment Support Schemes

17 Nov
2022

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

COVID-19 Employment Support Schemes

Oral evidence sessions 1 session

17 Nov 2022

View on parliament.uk

COVID-19 Employment Support Schemes

Beth Russell · HM Treasury Janet Alexander · HM Revenue and Customs Jim Harra · HMRC

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Fortieth Report - COVID employment support schemes	HC 810	8 Mar 2023	26	Responded

Recommendations & Conclusions

5 results

6 Recommendation Not Addressed

Fortieth Report - COVID employment…

The Departments have yet to fully capture the lessons that must be learnt from the...

The Departments have yet to fully capture the lessons that must be learnt from the employment support schemes to inform future large-scale government financial interventions. We have stressed throughout our work examining the COVID-19 pandemic the vital importance of government … Read more

Government Response

The government response is completely unrelated to the recommendation, and instead discusses DVLA driving license backlogs.

HM Treasury

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7 Conclusion Not Addressed

Fortieth Report - COVID employment…

We also asked the Departments whether the evaluations would cover the schemes’ effects on groups...

We also asked the Departments whether the evaluations would cover the schemes’ effects on groups who were not eligible and groups that were supported, including those on furlough who took a second job.10 The Departments committed to looking at whether … Read more

Government Response

The government response is completely unrelated to the conclusion, and instead discusses cancer waiting times and NHS funding.

HM Treasury

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14 Conclusion

Fortieth Report - COVID employment…

In July 2022, HM Revenue & Customs (HMRC) estimated that £4.5 billion had been paid...

In July 2022, HM Revenue & Customs (HMRC) estimated that £4.5 billion had been paid to claimants as a result of error and fraud within the two schemes. It told us that this remained its best estimate of the extent … Read more

HM Treasury

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15 Conclusion

Fortieth Report - COVID employment…

As part of our initial inquiry into fraud and error across COVID-19 support schemes in...

As part of our initial inquiry into fraud and error across COVID-19 support schemes in June 2021, we concluded that departments did not make enough use of counter fraud expertise when designing new initiatives to ensure they minimise losses to … Read more

HM Treasury

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16 Conclusion

Fortieth Report - COVID employment…

We also received written evidence from the Chartered Institute of Taxation.

We also received written evidence from the Chartered Institute of Taxation. It told us the SEISS application process was likely to have contributed to ineligible claims. It said that, because taxpayers rather than agents had to apply for SEISS, HMRC … Read more

HM Treasury

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Government Response AI assessment · 23 of 14 classified

Accepted 13

Acknowledged 5

Not Addressed 2

Rejected 3

Total 14 recs + 12 conclusions

Correspondence 1 letter

29 Nov 2022 Correspondence from Janet Alexander, Director Compliance Operations Directorate, HMRC, re HMRC Covid-19 Employment Support Schemes – Public Accounts Committee, dated 21 November 2022

Parliament page