Individual Learning Account (Hansard, 27 February 2004)

§ Sue Doughty
To ask the Secretary of State for Education and Skills when he expects the auditing of Individual Learning Account learning providers to be completed; and if he will make a statement. [156404]

§ Mr. Ivan Lewis
The Department's Compliance Unit expects to have completed the majority of its Individual Learning Account (ILA) claim validation checks by late summer 2004. Of those registered, learning providers subject to review 68 are currently with the police. It is not possible to assess the time it will take for the police to complete their investigations.
The Department remains committed to making payments to learning providers where ILA claims are properly validated.

§ Sue Doughty
To ask the Secretary of State for Education and Skills how many claims from Individual Learning Account learning providers have(a) been audited with evidence of fraud discovered, (b) been audited without fraud being discovered and received any outstanding payments and (c) not yet been audited; and if he will make a statement. [156405]

§ Mr. Ivan Lewis
Since closure of the Individual Learning Account (ILA) programme reviews carried out by the Department have resulted in:(a) evidence of potential fraud being found in connection with 159 registered learning providers of which 68 are with the police; (b) investigations and validation checks completed enabling 352 learning providers to be cleared or closed with the Department making payments of £1.1 million to 33 learning providers; and (c) 278 learning providers with whom the Department is still carrying out investigation and validation work by seeking further evidence, reviewing such evidence or negotiating a settlement.
In addition, as at 24 February 2004, 186 learning providers have made claims following the ruling on ILAs by the Parliamentary Commissioner for Administration. 119 claims from learning providers have been reviewed. Of those reviewed, 40 claims could not be validated and payments of £147,920 are being made to 79 providers. A further 67 claims from providers are in process of being validated.
The Department will continue to pursue those providers that have wrongfully claimed from the public purse and where appropriate seek repayment. Where there is evidence of potential fraud, providers are referred to the police. In cases where claims are properly validated, the Department has in place arrangements to pay the outstanding claims.