The UK Government has opened a crucial window of opportunity for individuals and businesses who received COVID-19 support funds they weren’t entitled to.
On 12th September 2025, the UK Government launched a time-limited COVID repayment window, allowing individuals and businesses to voluntarily repay financial support received during the COVID-19 pandemic. This voluntary repayment scheme represents the final chance to settle any outstanding liabilities before much tougher sanctions take effect in 2026.
The scale of the problem:
The government’s crackdown on COVID-related fraud comes as figures reveal the true cost of pandemic support scheme abuse. Over £10 billion has been lost to COVID fraud across various support programmes, yet only £1.54 billion has been recovered to date.
How will the repayment scheme work?
The government has established a streamlined process to make voluntary repayments as straightforward as possible.
The method of repayment varies depending on which specific scheme was used. There is a dedicated GOV.UK page guidance page which provides details on how to pay and more details about the government COVID-19 support schemes.
Importantly, this is described as a “no questions asked” scheme – meaning that if you come forward voluntarily before the December 2025 deadline, you can repay the funds without facing immediate investigation or prosecution.
The new voluntary scheme will run until December 2025. HMRC have stated that following this repayment window, those who don’t pay will ‘face the consequences’ when ‘investigatory powers and tougher rules come into force’. The government has emphasised that after December 2025, those who haven’t come forward voluntarily can expect:
- Enhanced investigatory powers
- Prosecution proceedings
- Much tougher sanctions and penalties
- Intensive scrutiny of their financial affairs
Which COVID Support Schemes Are Covered?
The voluntary repayment scheme is comprehensive, covering virtually every form of COVID-related financial support provided during the pandemic. This includes:
Employment Support Schemes:
- Coronavirus Job Retention Scheme (CJRS) – the furlough scheme
- Self-Employed Income Support Scheme (SEISS)
Business Support Programmes:
- Business support grants of all types
- COVID-19 business loans, including Bounce Back Loans
- Cultural Recovery Fund
- Grants from the Department for Health & Social Care
Consumer Support:
- Eat Out to Help Out scheme
- Any other COVID-related grants, loans, or benefits
The scheme’s broad scope means that whether you’re an individual who claimed support you weren’t entitled to, or a business that received grants or loans in error, this repayment window applies to you.
Given the government’s clear statement that this is the last chance for lenient treatment, and considering the significant consequences that await those who don’t take advantage of this opportunity, anyone who received COVID support they weren’t entitled to should seriously consider acting sooner rather than later.
Taking action
If you believe you may have received COVID support funds you weren’t entitled to whether through error, misunderstanding of the eligibility criteria, or any other reason this voluntary repayment scheme offers a straightforward path to resolution. The team at Ormerod Rutter can guide you through the process of voluntary repayments.
The government’s approach recognises that many people may have made genuine mistakes during an unprecedented and confusing time. However, the window for this understanding approach is limited and will close permanently in December 2025.
For more information contact the team on 01905 777600 or email hello@ormerodrutter.co.uk
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