Businesses and sole traders who that took Covid cash they weren’t entitled to have 48 hours to repay or face enforcement action in the new year.

The Voluntary Repayment Scheme for those who claimed financial support they didn’t need or weren’t entitled to during the pandemic will close at midnight on 31 December. As part of a government crackdown on covid fraud, a new team will slap instant 100% fines on anyone who wrongfully claimed financial support – with the most serious cases facing court action and a potential prison sentence. 300 allegations of Covid fraud, worth £35 million, have been made since a new reporting hotline was set up in September. 

These allegations will be investigated by the new specialist fraud team when it starts work in the new year. Chancellor Rachel Reeves said: “The message is clear – if you wrongly claimed, put it right now.  

“This money belongs to your local community – our NHS, our schools and our vital public services took tax-payer-funded help they weren’t entitled to and who fails to come forward will face the consequences.”

Businesses and sole traders should get in touch via  Make a Voluntary Repayment of COVID-19 Funding - GOV.UK before 11:59pm on 31 December 2025. 

Fact Sheet:

The Covid Voluntary Repayment Scheme shuts in 48 hours time, meaning Covid business loan claimants have just days to come clean if they claimed more business support than they should during the pandemic. Here’s what they need to know. 

What is the Covid Voluntary Repayment Scheme? 

The Voluntary Repayment Scheme allows individuals or businesses who received support when they should not have, to voluntarily repay the funds. The Scheme applies to those who received support through the following schemes:

  • Coronavirus Job Retention Scheme (CJRS)
  • Self Employed Income Support Scheme (SEISS)
  • Eat Out to Help Out Scheme
  • Cultural Recovery Fund
  • Business support grants
  • Grants from the Department for Health & Social Care
  • COVID-19 Business Loan Guarantee Schemes, e.g. Bounce Back Loan

Why should I come forward? 

Coming forward now to make a voluntary repayment is the quickest and fairest way to put things right if you think you received COVID-19 support you were not entitled to or no longer needed. It helps protect taxpayers’ money, reduces the risk of formal recovery action, and can minimise any penalties or interest due.

What punishments could I face if I do not repay? 

If you do not come forward and we later find you were not entitled to COVID-19 support, we can recover the money and, in some cases, charge interest and financial penalties. Where fraud or deliberate abuse is suspected, cases will be investigated and could lead to civil or, in the most serious instances, criminal action. Coming forward voluntarily may be taken into account when deciding what action to take.,

What if I am struggling to repay due to genuine financial difficulties? 

If you’re struggling to repay, speak to your lender. You may be able to use the “Pay As You Grow” options, such as extending the loan term, making interest‑only payments or taking a repayment holiday. 

If you’ve already defaulted and received a formal demand, your lender may still agree a repayment plan, so contact them as soon as possible. 

If you’re unsure what to do, you can get free, impartial debt advice from Business Debtline on 0800 197 6026 or at www.businessdebtline.org. 

How do I make a repayment? 

To make a voluntary repayment contact your original lender, department or the public body that issued funds to arrange repayment or set up a repayment plan. Always use official channels for repayment and keep confirmation of your payment for your records. 

  • Coronavirus Job Retention Scheme (CJRS)
  • Self Employed Income Support Scheme (SEISS)
  • Eat Out to Help Out Scheme (email This email address is being protected from spambots. You need JavaScript enabled to view it.)
  • Cultural Recovery Fund (email This email address is being protected from spambots. You need JavaScript enabled to view it.)
  • Business support grants (email This email address is being protected from spambots. You need JavaScript enabled to view it.)
  • Grants from the Department for Health & Social Care (email This email address is being protected from spambots. You need JavaScript enabled to view it.) 

COVID-19 Business Loan Guarantee Schemes, e.g. Bounce Back Loan (contact your lender directly)