Government to probe learning scheme scam

A fast-track enquiry in to the collapse of the Government’s flagship training programme has been launched after widespread abuse and fraud was discovered.

The scheme was closed down last November after ministers found evidence of a 'breach' in the system which controlled the administration of Individual Learning Accounts.

The education and skills select committee announced its decision to hold an urgent inquiry in January. The National Audit Office will conduct the investigation.

Chairman of the committee Barry Sheerman said: "This is one of the most significant crises in the education department for as long as I have been in politics. It is a major flagship policy which has gone seriously wrong."

Minister for lifelong learning John Healey said he hoped the inquiry's findings would be published quickly.

Prior to the Government closing the scheme millions of pounds had been fraudulently claimed by so-called training providers. People were unwittingly signed up, promised courses which sometimes never materialised, or given cheap photocopied materials of little educational value.

The Government was also concerned the security system had been breached at the company responsible for monitoring and allocating funds.

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