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.

Union says Welsh Government has funded repairs, meals and swimming lessons but failed to address one of the biggest pressures facing schools

SCHOOL leaders have welcomed extra Welsh Government funding for repairs, free school meals and swimming lessons — but warned that pupils with additional learning needs have been overlooked.

The criticism came after the Welsh Government set out its supplementary budget for 2026-27, including £40m for school buildings and repairs, £15m to expand free school meals in secondary schools, and £2m for swimming lessons.

Laura Doel, national secretary of school leaders’ union NAHT Cymru, said the extra capital funding for school buildings was welcome and would “go some way to plugging the gap”.

She also welcomed the expansion of free school meals, saying no child should go hungry because of their parents’ financial circumstances.

But Ms Doel said the “significant omission” was the lack of additional funding for ALN provision.

She said: “It beggars belief that of money that has come to Wales thanks to investment into additional needs in England, not a penny has gone to support pupils with ALN in Wales.

“We have seen local authorities, directors of education and the profession united on the need for significant investment in supporting our most vulnerable learners, but this government has chosen to ignore the pleas for support.

“It calls into question whether education is a key priority for this government.”

ALN pressure

Additional learning needs provision has become one of the major pressures facing schools and councils across Wales, with rising demand for specialist support, assessments, staffing and placements.

School leaders argue that without dedicated funding, already stretched school budgets are being forced to absorb costs which can affect support for both ALN pupils and the wider school community.

The Welsh Government says the supplementary budget is designed to support key priorities, including public services, schools, health and the cost of living.

But NAHT Cymru said the absence of new ALN money was difficult to justify at a time when schools are repeatedly warning that vulnerable learners need more support.

The Herald has asked the Welsh Government how much of the school buildings funding will come to west Wales and why no specific additional allocation has been made for ALN provision.

MINISTERS have announced plans to speed up reforms aimed at helping high street businesses compete with online retailers and overseas sellers.

The Treasury said changes to low-value imports will now be brought forward by six months, with customs duty relief on goods worth £135 or less set to be scrapped from October 2028.

The move is designed to stop online retailers gaining an unfair advantage over shops, pubs, restaurants, hotels and other high street businesses.

At present, many cheaper imported goods can enter the UK without customs duty, a system which ministers say has left traditional retailers at a disadvantage.

The Government is also reviewing how VAT is collected from businesses trading through online marketplaces, amid concerns that some sellers are failing to pay the tax they owe.

The Treasury said revenue raised from tougher VAT enforcement would be used to help improve the business rates system for high street firms.

Dan Tomlinson, Exchequer Secretary to the Treasury, said: “This action tackles the unfair competition and dodgy businesses that are doing real damage to our high streets.

“And by making sure that tax is paid when it’s owed, we can raise revenue to put back into improvements to the business rates system for pubs, restaurants, hotels and other high street businesses.”

The package also includes a consultation on VAT reform for land used in new social housing developments.

Ministers say the change could help speed up the delivery of affordable homes by making the tax system better reflect how social housing schemes are developed.

The Treasury said the measures form part of wider plans to make the UK tax and customs system simpler, fairer and more focused on economic growth.