New enforcement unit given powers to search homes, seize assets and recover money from bank accounts

A NEW government counter-fraud squad has begun investigations into suspected Covid loan scammers as ministers step up efforts to recover billions of pounds lost during the pandemic.

The Public Authorities Fraud Investigation and Enforcement Service (PAFIES) has been launched with what ministers say are the strongest investigatory powers in a generation.

The new unit will be able to search the premises of suspected fraudsters, seize assets, compel information from third parties, and recover money directly from bank accounts and wages where debts are not repaid.

The window for pursuing civil claims relating to Covid fraud has also been doubled from six years to twelve years, meaning suspected fraudsters can be pursued until 2032.

The crackdown follows the government’s response to the Covid Counter Fraud Commissioner’s final report, which found that £10.9 billion was initially lost to pandemic fraud and error.

Nearly 2,000 company directors have already been banned and 86 criminals prosecuted.

The government says counter-fraud measures introduced in the 2024 and 2025 Budgets have protected £7.5 billion of public money over two years.

Chancellor Rachel Reeves said: “In contrast to the last government, who left the door open to £10.9 billion of pandemic era fraud and error, we have taken action to protect £7.5 billion of public money.

“My message to those who owe the public purse money is clear — those who profited, will pay.”

Satvir Kaur, Parliamentary Secretary in the Cabinet Office, said: “Those who chose to exploit a national crisis to line their own pockets now have nowhere left to hide.

“Our decision to go after those who have cheated the system as part of our wider crackdown on fraud against public services has already helped save £7.5 billion.

“We will use every tool at our disposal to protect public money and fund the frontline services the British people rely on.”

The new powers are contained in the PAFER Act 2025, which gives investigators enhanced search-and-seizure powers, stronger information-gathering powers, civil financial penalties, and direct recovery powers following a Public Sector Fraud Authority investigation.

Those who failed to respond to the Voluntary Repayment Scheme last year are expected to face enforcement action from the autumn.

A Covid fraud reporting website, launched in September, has already received more than 1,000 reports of suspected fraud.

A MILFORD HAVEN man has appeared before magistrates accused of rape and sexual assault.

James Kershaw, 46, is charged with raping a woman in Milford Haven between February 1, 2013, and March 31, 2014.

He also faces a charge of sexually assaulting a female over the age of 13 by penetration with his finger between December 1 and December 30, 2012.

Kershaw appeared before Haverfordwest Magistrates’ Court on Tuesday (Jun 23) by video link and denied both charges.

Due to the seriousness of the allegations, magistrates declined jurisdiction and sent the case to Swansea Crown Court, where Kershaw is due to appear for a pre-trial hearing on July 24.

He was released on conditional bail, with the sole condition that he must not contact the complainant.

A SPITTAL man is to stand trial accused of assaulting a man and causing actual bodily harm.

Robert Hedley, 41, of Wesley Way, Spittal, Haverfordwest, is charged with assaulting Liam Morley-Trivett at St Clears on August 30, 2025.

The case was before Haverfordwest Magistrates’ Court on Thursday (Jun 18).

Hedley was granted unconditional bail and is due to stand trial at the same court on Monday, June 29.

The trial is listed for 10:00am and has been given a time estimate of twenty minutes.