The Department estimated fraud and error levels of £985 million were contained in the £11.7 billion grant funding provided for the first wave of business support grant schemes (Small Business Grant Fund; Retail Hospitality and Leisure Grant Fund; and Local Authority Discretionary Grant Fund). The estimated fraud and error in these three schemes is significantly higher than the estimates for the second and third wave of grant schemes.12 The Department explained that this was due to the first wave of business support grant schemes not being application-based and relying on the existing system data of the local authorities, which in some cases led to overpayments in error.13 We asked the Department if it had attempted to recover the irregular payments for these schemes. The Department told us that the majority of the grants were paid in error and consequently will not be recovered as they were made to legitimate businesses who were struggling.14 The Department’s 2021–22 Annual Report and Accounts does not disaggregate their fraud and error estimate into separate fraud and error values.15