Individual Learning Accounts reintroduced in Wales

The very successful Individual Learning Accounts (ILA) scheme was cancelled at the end of 2001 amid allegations of fraud by some learning providers. The opportunity for individuals to obtain subsidised training has now been opened up again to people living in Wales. The new scheme offers financial support of 50% of training costs up to £;100 in a year, and 100% support up to a maximum of £;200 for individuals who receive tax credits or other benefits.

Information about the scheme is available on the ILA Wales website.
(Source: www.ilawales.com)
...back to 29 August 2003

Individual Learning Accounts

Individual Learning Accounts (ILAs) were introduced by the Department for Education and Skills (DfES) in August 2000 as a new means of subsidising training. Individuals were invited to open accounts and were offered discounts on a wide range of training. The scheme was very popular and, by October 2001, over two and a half million accounts had been opened. Unexpectedly, following a warning that the scheme was to be suspended because it had "expanded beyond its capacity", the programme was shut down completely in November 2001, and in Scotland in December 2001, amid police investigations of fraud and theft.

Subsequently, the Parliamentary Ombudsman, Ann Abraham, investigated two complaints, one from a student who had been unable to obtain a training discount because his account had been fully used without his knowledge, the other from a learning provider who suffered hardship as a result of the withdrawal of the scheme and had been refused compensation by the DfES.

The Ombudsman's report, published on 24 April, found that the DfES was guilty of serious maladministration and that its service provider, Capita Business Services Ltd, had failed to work effectively with the Department to ensure the security of the scheme, contributing to its eventual closure. It appears that, after logging into the scheme's computer system, it was possible by continuous trial and error for users to identify live accounts with funds available. The DfES has agreed to reimburse the student for the additional costs of his chosen course and to identify and reimburse any other students in the same position.

As the scheme was designed to benefit students rather than learning providers, there will not be any national compensation arrangements for learning providers whose businesses were affected by the scheme's closure. However, the DfES agreed to reimburse learning providers for costs incurred by allowing learners to begin their courses while waiting for ILA membership details which, due to the Department's delay, were never received.

A full copy of the Ombudsman's Report is available on her website.

Although the DfES has promised a new-look ILA scheme in the future, the DfES website makes no mention of ILAs. The Welsh Assembly recently published new Regulations that would permit the introduction of ILAs in Wales under the direction of the National Council for Education and Training for Wales.
(Source: www.ombudsman.org.uk/pca/document/sr0304/ILA.pdf)
...back to 25 April 2003