HMRC Assesses Potential Fraud and Errors in Government Scheme
- Up to £3.5bn in furlough payments may have been claimed fraudulently or paid in error
- HMRC estimates 5-10% of claims were wrongly awarded
- Government’s Coronavirus Job Retention Scheme has cost £35bn since its launch
The UK’s tax authority, HMRC, has estimated that up to £3.5bn in payments from the Coronavirus Job Retention Scheme may have been claimed fraudulently or paid in error. Jim Harra, HMRC’s permanent secretary, informed MPs on the Public Accounts Committee that they anticipate an error and fraud rate of between 5-10% for the program. The scheme, which has cost the government £35bn since its launch in March, pays 80% of workers’ wages while on leave up to a maximum of £2,500 per month. Harra stated that they will not target employers who made legitimate mistakes but will focus on tackling abuse and fraud.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (HMRC’s permanent secretary) and reports on the estimated error and fraud rate in the Coronavirus Job Retention Scheme. It also includes relevant details about the scheme’s cost and purpose. The article is not sensationalist, redundant, or biased.
Noise Level: 3
Noise Justification: The article provides relevant information about potential fraud and errors in the Coronavirus Job Retention Scheme, with quotes from a key figure. It does not contain irrelevant or misleading information, nor does it reinforce popular narratives without questioning them. The article also stays on topic and supports its claims with evidence (the HMRC’s estimates). However, it could provide more actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: The Coronavirus Job Retention Scheme has impacted the government’s finances and potentially affected businesses that received incorrect payments.
Financial Rating Justification: This article discusses financial matters related to the Coronavirus Job Retention Scheme, which is a government program aimed at supporting businesses during the pandemic. It mentions potential fraudulent claims and errors in payments, impacting the government’s finances and possibly affecting businesses that received incorrect funds.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
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