Educational Allowances (Hansard, 19 June 2002)

§ Mr. Ingram

I assume that the hon. Member is referring to what is now known as the learning credits scheme. This scheme comprises two forms of allowance: standard learning credits and enhanced learning credits.

The standard learning credits scheme (SLC) was launched on 1 April 1999 and operates on similar lines to the individual refund scheme (IRS) it replaced, but its value, £175 per year, is 25 per cent. higher. Individuals must contribute at least 20 per cent. of the cost of any learning for which it is claimed. The SLC can, therefore, fund up to 80 per cent. of the cost of learning. This 80/20 split encourages development of individual understanding and buy-in to the learning process.

339W

Both the SLC and the IRS which preceded it are applicable to a wide range of learning purposes in support of an individual's personal development. The only limitation is that the learning must have a benefit to the services, but, in practice, this still allows almost all forms of development. A representative list of the range of courses includes:

GCSE—e.g. Maths, English, Psychology, Physics, Accounting, Geography
A-Level—e.g. Law, Sociology, Economics
AS Levels—French
OU modules
Degrees
City and Guilds teaching certificates for basic skills
Book keeping and accounts
Business studies
Accounting
Counselling
Sports therapy
Human physiology and health
NVQs of all types
Language training
Computer courses
European computer driving licence
Microsoft Office user specialist
IT practitioner courses
C++ programming
Windows 2000 networking
Microsoft Project.

The uptake of IRS/SLC since 1997 for the armed forces is shown in the table.

FY	Number of Claimants	Trained strength of armed forces	claimants as a percentage of trained strength
1997–98	¹8,297	²97,523	8.5
1998–99	11,580	192,155	6
1999–2000	12,773	189,574	6.7
2000–01	21,779	187,874	11.6
2001–02	24,550	186,610	13.2
¹ Army figures unavailable.
² Excludes Army.

The second part of learning credits, which will be known as enhanced learning credits (ELC), complements the SLC scheme and is due to be launched on 1 April 2004. This is an imaginative and large-scale initiative to provide partial funding for personnel wishing to undertake academic or vocational education for their own personal development. ELC will enable personnel to access a considerably higher level of sponsorship than SLC and is available for a maximum of three claims (one in each of three separate years which need not be consecutive) during a service person's career and for up to 10 years after leaving the service.

The ELC scheme requires a minimum period of service in order to qualify and there are two levels of claim depending on length of service. The initial qualification period is four years' service after which an individual can claim the lower tier level of funding (£1,000 pa). A further four years' service allows access to the higher tier of 340W funding (£2,000 pa). As with the SLC scheme, an individual must show commitment to learning by funding at least 20 per cent. of the overall cost.

The enhanced learning credit scheme will enable the individual to make substantial plans for self improvement in a coherent and long-term fashion and will also encourage employing officers to factor major lifelong learning activities into a subordinate's personal development plan. This will have a positive effect on retention of personnel who wish to lay the foundations for success in their second career while maximising their military potential.

Based on the strength of the armed forces on 1 April 2002 (204,686) and the maximum available credit (£175) the total cost of SLC if every service person were to apply would be some £36 million. However, this does not take account of personnel on operations or already in intensive training who would be unlikely to claim; moreover, it does not reflect the historical take-up of the SLC scheme. Taking this into account, and using the latest figures in the table, a more realistic total cost would be some £4 million.