Financial Incentives to Promote Adult Learning in Australia by OECD

Author:OECD
Language: eng
Format: epub
Tags: education/employment
Publisher: OECD Publishing
Published: 2019-08-22T00:00:00+00:00

Box 2.2. Lessons learned from fraudulent use of ILAs in the United Kingdom

In the United Kingdom, ILAs were announced in the 1999 budget law and officially launched in 2000. By 2001, around 8 500 training providers were accredited nationwide when the Department for Education and Skills started investigations related to illicit use of the ILAs. The fraudulent activity was based on collusion between learners and training providers, where learners would allow training providers to buy their learning account numbers without any training taking place. Some providers offered potential learners a computer at no cost as an additional incentive to participate in fraudulent activity. Following its investigation, the Parliamentary Committee of Public Accounts reported that the total expenditure on the scheme exceeded GBP 290 million with fraud and abuse amounting to GBP 97 million.

The committee that examined the level of fraud and abuse and the actions taken drew several conclusions:

While the government undertook extensive piloting, these pilots did not provide workable solutions. Rather than re-plan the project, the government went ahead with a scheme that was not well thought through or tested and which was implemented in too short a time frame.

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