A STAGGERING £3.5 billion has been paid out either in error or through fraud to companies making claims under the government’s coronavirus furlough scheme, a Commons committee has revealed.

The shocking findings were revealed by the cross-party Commons Public Accounts Committee (PAC), which said that the way the furlough scheme was drafted left an “unacceptable” amount of room for fraudulent claims.

The committee of MPs called on HM Revenue and Customs to act.

In response to the findings, research group the Institute of Employment Rights (IER) said: “The PAC argued holding the wealthy to account is especially important at a time when people across the UK are being forced to tighten their purse strings.

“Indeed, this point was underlined by the stark disparity in fortunes between business and workers this week, as the government said it cannot afford to adequately support workers in Tier 3 lockdowns.

“[This was] as Serco posted a surge in profits on the back of Westminster’s payment of up to £410 million to provide the failed Test and Trace service.”