HL Deb 15 November 2001 vol 628 cc101-3WA
Lord Pilkington of Oxenford

asked Her Majesty's Government:

Further to the answer by Lord Davies of Oldham on 1 November (H.L. Deb., cols. 1515–17), what level of complaints about the individual learning accounts scheme justified their decision to strengthen the scheme in the summer; and [HL1146]

Further to the answer by Lord Davies of Oldham on 1 November (H.L. Deb., cols. 1515–17), when they obtained evidence of real fraud being conducted in respect of the individual learning accounts scheme; and whether that evidence was the justification for strengthening the scheme in the summer. [HL1147]

The Parliamentary Under-Secretary of State, Department for Education and Skills (Baroness Ashton of Upholland)

The decision to strengthen the scheme was triggered by a rapid increase in the rate of the complaints. At 31/7/01, the department had received 3,096 complaints, equating to 0.19 per cent of more than 1.5 million learners who had opened ILA accounts. Two months later the number of complaints received had nearly doubled to 6,053, equating to 0.27 per cent of more than 2.3 million learners.

By the end of October, no cases of fraud had been proved and 8,448 complaints had been received— justover a quarter of which concerned activity which would not comply with the rules of the scheme. The police have made 30 arrests involving four registered individual learning account providers. There are currently 84 registered learning providers about which the department has had a larger number of complaints and about which it has more serious concerns. Police are in the early stages of investigating suspected fraud by two of these and have expressed an initial interest in another nine providers. The department's Special Investigations Unit is undertaking investigative work on these nine cases prior to a possible formal police investigation.

Baroness Blatch

asked Her Majesty's Government:

When they first received information about irregular applications for individual learning accounts. [HL1148]

Baroness Ashton of Upholland

The department first received information about incentives claimed by a provider without the knowledge of the account holder on 11 June this year. This and subsequent complaints led to the provider in question being suspended on 25 June.

Baroness Blatch

asked Her Majesty's Government:

Who authorised the publication of the document Education and Skills, Delivering Results. A Strategy to 2006, which pledged the continuation and expansion of individual learning accounts. [HL1149]

Baroness Ashton of Upholland

The document was authorised by my right honourable friend the Secretary of State.

Baroness Blatch

asked Her Majesty's Government:

How many individual learning accounts have been awarded; and how many of them are deemed to be irregular. [HL1150]

Baroness Ashton of Upholland

At the end of October, 2,529,609 individual learning accounts had been opened. We do not hold records about irregular accounts. However, we do identify incidences of irregular accounts through complaints received by individuals. In addition, manual verification checks are undertaken by the ILA Centre to identify potentially irregular applications and a routine analysis by the ILA Centre and officials also helps to distinguish irregular accounts.

Baroness Blatch

asked Her Majesty's Government:

What provision for verification of applications for individual learning accounts was put in place; and to what degree it has been successful. [HL1151]

Baroness Ashton of Upholland

The Individual Learning Account (ILA) Centre has a number of provisions to verify applications from individuals. The ILA software is designed to prevent more than one account being opened by the same individual. Manual verification checks are undertaken by the ILA Centre to identify potentially irregular applications and a routine analysis by the ILA Centre and officials also helps to distinguish irregular accounts.