The Insolvency Service has published its latest Bounce Back Loan fraud recovery figures, providing an update on the Government’s civil and criminal enforcement activity relating to abuse of the Covid-19 support scheme.

The latest Bounce Back Loan fraud statistics cover the period from May 2020 to 30 June 2026, representing more than six years of investigations, legal proceedings and enforcement activity. They relate to a scheme that provided around £47 billion of Government-backed lending to UK businesses and where the National Audit Office has previously estimated potential fraud at approximately £4.9 billion, although it acknowledged that the true figure remains uncertain.

According to the latest statistics:

• Criminal confiscation orders totalled £988,099.78, with £581,525.71 recovered.
• Civil Compensation Undertakings and Compensation Orders totalled £12,688,401.00, with £3,494,318.00 recovered as at 30 June 2026.
• The Government also states that £4.7 million of the outstanding balance is currently subject to repayment plans, whilst enforcement action continues in relation to a significant proportion of the remaining sums.

Overall, the Insolvency Service reports that more than £13.6 million has been ordered or agreed to be repaid, with just over £4 million recovered during the reporting period.

The Scale of Bounce Back Loan Scheme

The Bounce Back Loan Scheme operated between May 2020 and March 2021, providing approximately 1.5 million Government-backed loans to businesses throughout the United Kingdom.

Introduced at the height of the Covid-19 pandemic, the scheme was designed to deliver emergency financial support as quickly as possible. To achieve that objective, lenders relied largely on information provided by applicants, allowing funds to reach businesses when they were needed most.

Whilst the overwhelming majority of businesses used the scheme for its intended purpose, the speed with which it was introduced inevitably increased the opportunity for abuse.

Bounce Back Loan Fraud and Legitimate Business Failures

Separate Government repayment statistics published in June 2026 show that, as at 31 March 2026, 66.33% of Bounce Back Loan facilities had either been repaid in full or remained up to date with their repayments.

By the same date, the Government guarantee had already been called upon in respect of 28.29% of all Bounce Back Loan facilities, meaning the taxpayer had reimbursed lenders for those losses.

It is important not to confuse those guaranteed losses with fraud.

Many businesses used Bounce Back Loans exactly as intended but, despite receiving Government support, were unable to survive the long-term economic effects of the pandemic. Lockdowns, reduced trading, supply chain disruption, inflation, rising borrowing costs and difficult trading conditions resulted in many otherwise viable businesses ultimately failing.

The figures published this week relate specifically to enforcement action taken against individuals and directors alleged to have abused the scheme through fraud or other misconduct.

Parliament Calls for Greater Transparency

The publication of the latest figures follows criticism from the House of Commons Public Accounts Committee regarding the level of information available about the Government’s Bounce Back Loan recovery programme.

The Committee has previously called for greater transparency so that Parliament and taxpayers can properly assess the effectiveness of the Government’s efforts to recover public money lost through fraud.

The latest publication provides updated recovery figures covering the period May 2020 to June 2026. However, it does not disclose the overall cost of investigating, pursuing and recovering those sums.

Understanding those costs is important, but not simply to compare expenditure against the value of recoveries.

An effective enforcement programme also acts as a powerful deterrent. The prospect of investigation, director disqualification, compensation orders requiring repayment, confiscation of criminal assets, criminal conviction and, in the most serious cases, imprisonment sends a clear message that fraud against the taxpayer carries serious consequences.

The success of the programme therefore cannot be measured solely by the amount of money recovered. It should also take account of the wider public benefit achieved by deterring fraud, protecting public funds and demonstrating that those who abuse Government support schemes face meaningful consequences.

Publishing information about both the cost of enforcement and the wider outcomes achieved would provide Parliament and taxpayers with a more complete understanding of the programme’s overall effectiveness.

Investigations Continue

More than six years after the Bounce Back Loan Scheme was introduced, the latest figures demonstrate that Government investigations remain active.

In recognition of the scale of suspected Covid support fraud, the Government strengthened the Insolvency Service’s powers through legislation introduced in 2021. The changes allow the Insolvency Service to investigate directors of dissolved companies and, in appropriate cases, pursue director disqualification proceedings for up to 15 years after a company has been dissolved. This significantly extends the period during which directors can be investigated for misconduct relating to Bounce Back Loans and other Covid support schemes.

The Insolvency Service has wide-ranging powers to investigate suspected abuse of Government support schemes. Depending upon the evidence uncovered, investigations may result in director disqualification, compensation undertakings or compensation orders requiring repayment of losses, confiscation proceedings following criminal convictions and, in the most serious cases, criminal prosecution and imprisonment.

The publication of these figures demonstrates that the Government continues to pursue those suspected of abusing the scheme and that enforcement activity is likely to continue for many years to come.

NPD Comment

The latest statistics provide a useful update on the Government’s ongoing efforts to recover public money lost through Bounce Back Loan fraud.

They also reinforce an important distinction. Many businesses borrowed responsibly, used the funds exactly as intended and, despite that support, ultimately failed because of the unprecedented economic challenges created by the Covid-19 pandemic. Others, however, are alleged to have abused the scheme by providing false information or using public money dishonestly.

The recovery of public money is clearly an important measure of success. However, the wider objective of any enforcement programme is equally important. The prospect of investigation, repayment, director disqualification, criminal conviction and imprisonment acts as a powerful deterrent to those who may otherwise consider abusing public funds.

Publishing recovery figures is therefore a welcome step towards greater transparency. As future statistics are released, additional information regarding the cost of enforcement and the wider outcomes achieved would enable Parliament, businesses and taxpayers to better assess the overall effectiveness of the Government’s recovery programme.