Individual Learning Account
Encyclopedia
The Individual Learning Accounts scheme was announced in the 1997 Labour Party manifesto
to support adult education with a system of tax incentives from employers, as well as a cash contribution of £150 to each of a million individuals. The system was biased towards the uptake of information technology
skills, following the emergence of the Internet
.
, Gordon Brown
in the 1999 budget http://www.guardian.co.uk/uk/1999/mar/10/2 and was launched in 2000 in the form of financial reimburses to educational course providers for the cost of the ILA incentives.
By the time the scheme was abandoned in October 2001, there were 8,500 accredited providers nationwide. The Department for Education and Skills was investigating 279 providers on the basis of substantial evidence of misselling, and police had arrested 30 people.
Prosecutions based on this fraud were still taking place in 2008.
Capita was the contractor that implemented the payment scheme. Following its investigation, the Parliamentary Committee of Public Accounts reported that the total expenditure on the scheme exceeded £290million (£37million paid towards Capita) with fraud and abuse amounting to £97 million.
The fraudulent activity was in the form of obtaining learning account numbers from individuals or of buying them from corrupt providers and simply cashing the credit, knowing that there was virtually no chance that the fact that no education had been delivered would be detected. At the same time, the "students" were made to think they were getting a computer for free. This was generally a 4–5 year-old machine, in which a "study pack" had been installed in order to amount to education providing.
launched ILA Scotland, to replace the original ILAs. This new scheme is managed by Learndirect Scotland
and the Student Awards Agency for Scotland
. This provides up to £200 per year for a variety of courses, or £500 for a course towards a higher education or professional qualification. ILAs are available for people with an income of £22,000 a year or less, or who are receiving benefits. ILAs in Scotland continue to be available, as of 2011.
launched a replacement ILA scheme in 2003.
The ILA Wales scheme will be closed by 31 March 2011.
New Labour, New Life For Britain
New Labour, New Life For Britain was a hugely significant political manifesto published in 1996 by the UK's Labour Party, which had recently restyled itself as New Labour under Tony Blair...
to support adult education with a system of tax incentives from employers, as well as a cash contribution of £150 to each of a million individuals. The system was biased towards the uptake of information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
skills, following the emergence of the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
.
Original scheme
The scheme was announced by the Chancellor of the ExchequerChancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
in the 1999 budget http://www.guardian.co.uk/uk/1999/mar/10/2 and was launched in 2000 in the form of financial reimburses to educational course providers for the cost of the ILA incentives.
By the time the scheme was abandoned in October 2001, there were 8,500 accredited providers nationwide. The Department for Education and Skills was investigating 279 providers on the basis of substantial evidence of misselling, and police had arrested 30 people.
Prosecutions based on this fraud were still taking place in 2008.
Capita was the contractor that implemented the payment scheme. Following its investigation, the Parliamentary Committee of Public Accounts reported that the total expenditure on the scheme exceeded £290million (£37million paid towards Capita) with fraud and abuse amounting to £97 million.
The fraudulent activity was in the form of obtaining learning account numbers from individuals or of buying them from corrupt providers and simply cashing the credit, knowing that there was virtually no chance that the fact that no education had been delivered would be detected. At the same time, the "students" were made to think they were getting a computer for free. This was generally a 4–5 year-old machine, in which a "study pack" had been installed in order to amount to education providing.
ILA Scotland
In 2004, the Scottish ExecutiveScottish Executive
The Scottish Government is the executive arm of the devolved government of Scotland. It was established in 1999 as the Scottish Executive, from the extant Scottish Office, and the term Scottish Executive remains its legal name under the Scotland Act 1998...
launched ILA Scotland, to replace the original ILAs. This new scheme is managed by Learndirect Scotland
Learndirect
learndirect is the public-facing brand of Ufi Ltd, a not-for-profit organisation created in 1998 to take forward the UK Government's stated vision of a University for Industry in England, Wales and Northern Ireland....
and the Student Awards Agency for Scotland
Student Awards Agency for Scotland
The Student Awards Agency for Scotland is an Executive agency of the Scottish Government. It pays the tuition fees of eligible Scottish higher education students, bursaries and supplementary grants. It also assesses students applying for loans...
. This provides up to £200 per year for a variety of courses, or £500 for a course towards a higher education or professional qualification. ILAs are available for people with an income of £22,000 a year or less, or who are receiving benefits. ILAs in Scotland continue to be available, as of 2011.
ILA Wales
The Welsh Assembly GovernmentWelsh Assembly Government
The Welsh Government is the devolved government of Wales. It is accountable to the National Assembly for Wales, the legislature which represents the interests of the people of Wales and makes laws for Wales...
launched a replacement ILA scheme in 2003.
The ILA Wales scheme will be closed by 31 March 2011.