UK Inquiry Tracker

DCMS management of COVID-19 loans

Public Accounts Committee Closed Inquiry

Opened: 31 Oct 2024 Closed: 16 Jun 2025 Parliament page

The COVID-19 pandemic placed enormous strain on the arts and sports sector, as many organisations were forced to close for prolonged periods. The Department for Culture, Media and Sport (DCMS) provided around £2.6 billion of support for organisations from 2020-22. A proportion of this support, £474 million, was provided in … Read more The COVID-19 pandemic placed enormous strain on the arts and sports sector, as many organisations were forced to close for prolonged periods. The Department for Culture, Media and Sport (DCMS) provided around £2.6 billion of support for organisations from 2020-22. A proportion of this support, £474 million, was provided in the form of loans repayable for up to 25 years. Given that this is the first time the DCMS has managed a loan book of this size, the National Audit Office (NAO) has launched an investigation into its ability to do so. As well as seeking to understand how effectively the DCMS is able to manage its loan book, it will also question if there are appropriate measures in place to oversee the repayment process. The NAO’s report will seek to understand how the department has managed any challenges that have arisen from the process so far. The Committee previously examined the Culture Recovery Fund , publishing its findings in 2021. The Committee warned that the DCMS would need a clear plan for how it would oversee the fund, ensuring it had the skills and capabilities within the organisation to do so. The Committee also recommended the Department implement lessons from across Government to ensure the process could benefit from the successes of other comparable schemes. Using the findings of the NAO report, the Committee will take evidence from senior Department of Culture, Media and Sport officials, with likely focuses including: - How effectively the Department has been able to manage its loan book and the processes it has in place in order to do so; - If the Department has a long-term plan for managing loan repayments and maximising financial returns and; - What lessons, if any, could be learned from the Departments approach to the governance of loan repayments. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Show less

1 Recommendation

24 Conclusions

1 Report

1 Oral session

6 Letters

1 Event

Activity timeline 10 events

12 Mar
2026

Correspondence

Letter from the Permanent Secretary at the Department for Culture, Media and Sport relating to recommendations 1 and 4a of the Committee’s …

10 Jul
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Twentieth report from Session 2024-25

2 Apr
2025

Report published

20th Report - DCMS management of COVID-19 loans

2 Apr
2025

Correspondence

Letter to the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

2 Apr
2025

Correspondence

Letter from the Permanent Secretary of DCMS relating to PAC report: DCMS management of COVID-19 loans, 1 April 2025

27 Mar
2025

Correspondence

Letter from the Director General for Policy at the Department for Culture, Media and Sport relating to the DCMS management of COVID-19 loan…

11 Feb
2025

Correspondence

Letter from the Permanent Secretary of the HM Treasury relating to the Local authority administered COVID support schemes in England, 31 Ja…

11 Feb
2025

Correspondence

Letter from the Permanent Secretary for the Department for Culture, Media and Sport relating to updates on progress made in Grassroot parti…

10 Feb
2025

Oral evidence

Oral evidence session

10 Feb
2025

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

Committee event

Oral evidence sessions 1 session

10 Feb 2025

View on parliament.uk

Gareth Davies · National Audit Office Gareth Davies · Department for Transport Max Tse · National Audit Office Nicola Hewer · Department for Culture, Media and Sport Polly Payne · Department for Culture, Media and Sport Rebecca Sheeran · National Audit Office Susannah Storey · Department for Culture, Media and Sport

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
20th Report - DCMS management of COVID-19 loans	HC 364	2 Apr 2025	25	Responded

Recommendations & Conclusions

25 results

2 Conclusion Accepted

20th Report - DCMS management of C…

Ensure PwC delivers full loan system functionality by September 2025 and prepare for contract end.

The Department’s management of its contract with PwC has been poor. The Department originally appointed PwC to advise on options for the management of its loans. After PwC identified the need for a managed service provider, the Department appointed PwC … Read more

Government Response

The government states that PwC delivered the full additional functionality for the loan management system in March 2025 for under £300,000. They have extended PwC's original contract for a year for business continuity and a strategic review will inform the future requirement for a Managed Service Provider, with re-tendering planned if needed.

HM Treasury

DCMS management of COVID-19 loans

Activity timeline 10 events

Oral evidence sessions 1 session

Reports 1 report · click to expand

Recommendations & Conclusions

Ensure PwC delivers full loan system functionality by September 2025 and prepare for contract end.

Department lacks understanding of long-term value for money for loan book management options.

Revisit loan repayment estimates and demonstrate tough management of troubled borrowers.

Compile a strategy for consistent and fair engagement with different sports borrowers.

Consider alternative arrangements to fill accountability gap for rugby union loans.

Evidence gathered on Department's management of COVID-19 loan book.

Department learned lessons, improved loan management staffing and governance.

Loan agents initially lacked expertise, prompting appointment of specialist provider.

Hybrid loan management approach caused integration issues and objective tension.

Department increased PwC contract scope for loan management system, raising costs.

Department justified increased PwC contract scope for system functionality and future flexibility.

Loan management system launched 15 months late with ongoing functionality concerns.

Department spending additional £300,000 to resolve loan management system functionality issues

Department conducted minimal analysis of future loan management costs beyond March 2025

Department reviewing strategic options for loan book, including sale or consolidation with other loans

Nine borrowers became insolvent, defaulting on £46.1 million in loans, exceeding expectations

Department expects all remaining borrowers to make first loan repayment by September

Department has not updated borrower failure assumptions since December 2022 despite new insolvencies

Department identified two potential fraud incidents totaling £2.2 million in COVID-19 loans

£124 million of sports loans (57%) allocated to Premiership Rugby League clubs

Three Premiership Rugby clubs receiving loans became insolvent, others remain financially fragile

Department considered sector financial sustainability and actively supported professional rugby union's recovery.

Department engaging with British Basketball Federation regarding franchising, funding, and loan repayment risks.

Department established arrangements to manage Accounting Officer's conflict of interest in rugby union matters.

Conflict of interest prevented direct questioning on Department's substantial rugby loans and financial exposure.

Government Response AI assessment · 25 of 1 classified

Correspondence 6 letters