Value for Money
The Bounce Back Loan Scheme: an update
Published 3 December 2021
7 recommendations
Department for Business, Energy & Industrial Strategy
Commercial and financial managementCorporate financeCOVID-19Fraud and errorGrants and fundsMoney and tax
nao.org.uk
This report provides an update on the Bounce Back Loan Scheme.
Recommendations (7)
Source: NAO Recommendations Tracker · PAC follow-up below
Department for Business and Trade
Rec 1
Accepted
Implemented
In managing the Bounce Back Loan Scheme, by April 2022 the Department should:
a) produce a formal strategy that sets out the longer-term ambitions, objectives and metrics for the impact of successful counter-fraud activity, and brings together its existing fraud risk assessment and counter-fraud actions; fraud risk appetite; and prioritisation of counter-fraud activities and resources based on evidence of cost-effectiveness – updating it as required to take account of any new fraud risks;
Department for Business and Trade
Rec 2
Partially Accepted
Work in Progress
b) develop a robust business case for detecting, preventing, and recovering fraudulent loans, including the economic rationale of its choices for counter-fraud activity; and the scale of resources needed for each activity;
Department for Business and Trade
Rec 3
Rejected
c) publish the level it is aiming to reduce fraud losses to, and report against this metric. This level should be based on the Department's expectation of the intended impact of its counter-fraud controls for the detection, prevention and recovery of fraudulent loans over time;
Department for Business and Trade
Rec 4
Accepted
Implemented
d) refresh its fraud risk assessment at least every six months using the best available evidence, including with input from the Government Counter Fraud Function;
Department for Business and Trade
Rec 5
Accepted
Implemented
e) evaluate options for controls against any new fraud risks on a cost-benefit basis, using this evidence to introduce controls within two months of identifying any new fraud risks; and
Department for Business and Trade
Rec 6
Accepted
Implemented
f) set-out key performance measures for each fraud control, and measure performance against them regularly, adapting the approach where necessary.
Department for Business and Trade
Rec 7
Rejected
In making changes to business support schemes the Department should:
g) revisit the scheme's business case, paying particular attention to the impact of changes on fraud and value for money. Where the Department accepts an increased risk of fraud and error as a trade-off with other policy objectives, the Department must lay this out explicitly. The requirement to consider trade-offs applies equally to new schemes.
Parliamentary Committee Follow-Up
The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.
Thirty-third Report: Covid-19: Bounce Back Loan Scheme
Public Accounts Committee
· 16 December 2020
· 9 recommendations