To ask the Secretary of State for Business, Energy and Industrial Strategy, what proportion of funds lost due to fraud and error in covid-19 loans schemes have been recovered; and what steps his Department is taking to (a) recover lost funds and (b) investigate fraudulent companies.

The delegated nature of the schemes places primary responsibility on lenders to recover money lost to fraud under the lender guarantee agreement.

Government continues to work with lenders, law enforcement, and partners to recover fraudulently obtained loans and protect taxpayers. £320 million worth of Bounce Back Loan facilities have been removed from guarantee cover by lenders to date, including £113 million due to facilities being ineligible for the scheme.

As of October 2022, Insolvency Service action has resulted in 391 director disqualifications and 2 criminal prosecutions, most relating to Bounce Back Loans. The National Investigation Service (NATIS) have also recovered £5.8 million to date.