'Learning' scam cost revealed

The cost in Scotland of a widespread adult learning fraud across the UK is £1.2m,a committee of MSPs has heard.

The government suspended the Individual Learning Account scheme in 2001 amid allegations of abuse.

The £1.2m figure was revealed by Eddie Frizzell, head of the Enterprise and Lifelong Learning Department, to the audit committee.

The ILA scheme was set up by the government in 2000 and was open to everyone over the age of 19. Each person registered was allocated up to £200 towards the cost of their education.

It was intended to be a method of moving people from welfare into work and improving skills.

In the UK as a whole, about £97m of taxpayers' money has been lost, it is estimated. In England, 11 firms face prosecution for claiming money for services they did not provide.

Insufficient checks

Ten learning providers were reported to the Crown Office but the Lord Advocate decided there was not enough evidence to prosecute them.

The committee heard that in Scotland, 100,000 people had signed up for ILAs.

Giving evidence, Mr Frizzell apologised for failing to have sufficient checks in place against fraud.

A total of £3m was being withheld from about 40 learning providers because of "irregularities", half of them in Scotland.

Lessons had been learned ahead of the re-launch of the ILA scheme but Mr Frizzell warned it would be more bureaucratic next time.