The MPs have urged the Boris Johnson-led government to publish a list of companies that have signed up to the furlough scheme amid concerns that there is no account for how much money is being spent through fraud and error. The Commons Public Accounts Committee said levels of “opportunistic fraud” could be running at between 7 per cent to 34 per cent. True scale of the losses, however, will not be disclosed until the end of next year at the earliest.
The committee has called on HM Revenue and Customs (HMRC) to release a list of employers which have received funding from the scheme by the end of January. It also said HMRC and the Treasury should do more to help the estimated 2.9 million workers who have been excluded from both furlough and the income support scheme for the self-employed. Both the schemes had cost over £55 billion, but have been extended into 2021 with the furlough scheme set to run until the end of April, and the self-employed support continuing to the end of January.
The committee expressed concern that the Treasury has not even been able to give a “ballpark figure”, as the Office for Budget Responsibility estimates the increased costs at £21 billion.
It said, “HM Treasury and HMRC should investigate whether more data within and outside of the tax system could be used to determine eligibility for currently excluded groups and write to the committee within six weeks to explain their findings.”
Committee chair Meg Hillier said that with so much taxpayers' money going to private companies, it was essential that there was full transparency. She said, “With the Treasury claiming it can't give even a ballpark figure for the cost of Covid job support until the end of next year, public scrutiny of where taxpayers' money is going is essential. Many workers, including freelancers and entrepreneurs, have not had a penny and are really struggling as they continue to fall through the gaps.”
She added, “There is data that could be crunched to reach and help these individuals, many of whom will be unable to work at all under Tier 3 restrictions.”
