Steve Hook reports.

A RESCUE plan for individual learning accounts is being considered, with the possibility of the Learning and Skills Council being closely involved to ensure value for money.

Talks are under way between the Department for Education and Skills and the LSC about how the Government’s troubled access-to-education scheme can be salvaged.

No new ILA accounts will be opened from December 7, when the current scheme run by Capita is suspended, Education Secretary Estelle Morris announced last week.

Wales and Scotland have said they remain confident of the value of their own ILA schemes.

In England, a number of pilot projects are expected to be launched through the LSC from December. It is hoped that a new ILA scheme will be running nationally from June next year.

Despite the difficulties experienced, the sector agrees there is a need for demand-led adult training and ILAs could continue to have a role, with the LSC closely involved and possibly in conjunction with the private sector.

Up to 279 training providers are being investigated and 30 arrests have been made as part of a police inquiry in England.

Education and Learning Wales, the equivalent of the LSC, is in charge of ILAs in the principality, a factor which has ensured a fraud-free system, according to the the devolved National Assembly. It is now hoped that the LSC can ensure similar standards in England.

“In Wales, we have had no reported cases of fraud and both the outputs and costs of the scheme remain on target,” said Jane Davidson, the assembly’s minister for lifelong learning. “We foresaw at an early stage that ILAs would need to be closely managed and therefore awarded the contract for delivery of the scheme to the national council, ELWa, with its experience of working with learning providers.”

She said she will take steps to make sure “unscrupulous training providers operating in England” don’t turn their attention to Wales.

A spokesman for the Scottish Executive says it too has “stronger procedures to counter fraud and mis-selling of ILAs”, although he added that 30 of its 1,300 providers are under investigation. The Scottish University for Industry vets training providers.

While there are plans to reform the scheme north of the border, it is expected to continue. The spokesman said: “We have asked for an immediate review of the scheme in Scotland. However, the position in Scotland is different and the case for continuation of the ILA in Scotland is strong.”

Capita says it has followed all the registration and verification procedures laid down by the Government. “We are continuing with the scheme and we are working with them on a number of aspects,” said Rod Aldridge, Capita’s chairman.

Meanwhile training providers are left counting the cost of the suspension of ILAs. One organisation alone, the National Extension College, will have to spend pound;50,000 on administration, including printing new publications incorporating the changes.