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Final chance to repay overclaimed COVID support

The Government has launched a new voluntary repayment scheme, giving individuals and businesses until December 2025 to repay funds they received from COVID support schemes that they were not entitled to.

This scheme is part of the government’s wider crackdown on COVID related fraud. Over £10 billion has been lost to COVID fraud, but only £1.54 billion has been recovered so far. HM Treasury has made it clear that this is the last chance to come forward voluntarily before tougher sanctions are introduced in 2026, which could include prosecution once new investigatory powers are in place.

What schemes are covered?

The voluntary repayment scheme covers all COVID schemes, including:

  • Coronavirus Job Retention Scheme (CJRS)
  • Self-Employed Income Support Scheme (SEISS)
  • Eat Out to Help Out
  • Cultural Recovery Fund
  • Business support grants
  • COVID-19 business loans (e.g., Bounce Back Loans)
  • Grants from the Department for Health & Social Care
  • Any other COVID-related grants, loans, or benefits

What Does This Mean for Employers?

If your business accessed any COVID support during the pandemic, it’s essential to review those claims carefully. Many overclaims were unintentional, caused by evolving guidance, time pressures, or genuine mistakes. If you haven’t already done so, now is the time to take action.

If you're unsure whether COVID support was correctly received or need help reviewing past applications for COVID support, it’s important to seek professional advice and act now.

Voluntary Repayments Where No Obligation Exists

While the focus of the scheme is on overclaimed support, some businesses may choose to repay government funding voluntarily, even where there is no requirement to do so. For example, businesses that performed better than expected during or after the pandemic may feel a moral or reputational responsibility to return support they no longer need. The scheme provides a clear and formal route to make such repayments, regardless of whether an overclaim occurred.

How to repay? 

The method of repayment depends on the scheme used. The government’s Make a Voluntary Repayment of COVID-19 Funding guidance provides details on how to repay and further guidance on each COVID support scheme.

A new COVID fraud reporting service has also been launched for public to report suspected COVID scheme fraud.

 

This article reflects the position at the date of publication shown above. If you are reading this at a later date you are advised to check that that position has not changed in the time since.    

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