Individual Learning Accounts (Hansard, 13 February 2004)

§ Mr. Wilshire
To ask the Secretary of State for Education and Skills what the average waiting time has been for claims for payment from the terminated individual learning accounts to be assessed and paid. [154339]

§ Mr. Ivan Lewis
Since the closure of the Individual Learning Account (ILA) programme on the 23 November 2001, due to serious potential fraud and abuse, the average waiting time for payment of ILA incentives, in cases where validation checks to confirm the propriety of payments from public funds are straightforward, is 20 days. The average waiting time for payment to learning providers in cases where validation checks have proved complex is some 17 months. This takes into account procedures for obtaining sufficiently robust evidence from both learning providers and learners to ensure the propriety of payments from the public purse and lengthy settlement negotiations.
Where registered learning providers have submitted a claim following the Ombudsman's Report into ILAs of 10 April 2003, the average waiting time for payment, including validation checks, is a little under 5 months.

§ Mr. Wilshire
To ask the Secretary of State for Education and Skills what steps he is taking to ensure that claims for payment to training providers are settled promptly from the terminated individual learning accounts. [154340]

§ Mr. Ivan Lewis
To ensure the propriety of payments and to protect public funds the Department requires registered learning providers to supply appropriate evidence to support all Individual Learning Account (ILA) claims. This evidence is subject to thorough validation checks before payments are made. Since closure of the ILA programme on 23 November 2001, due to serious potential fraud and abuse, to the end of January 2004 the Department's process for validating claims has resulted in £12.9 million being paid to 3,420 registered learning providers.
Where we have unresolved complaints or there are other on-going concerns, payments continue to be withheld pending the outcomes of inquiries and investigations. Currently, following closure, £14.8 million is withheld.