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Individual Learning Accounts: Fraud

Question for Department for Education

UIN 19732, tabled on 21 June 2021

To ask the Secretary of State for Education, what final estimate his Department made of the amount of money lost to fraud during the Independent Learning Account scheme.

Answered on

28 June 2021

The Individual Learning Account scheme ceased in 2001 and predates the Education and Skills Funding Agency and its predecessor the Learning and Skills Council. The National Audit Office reported in the Department for Education and Skills Resource Accounts in 2001/02 that the department estimated that £97 million had been subject to improper and fraudulent claims, out of a total scheme spend of £274 million. The cost of fraud and serious irregularities, based on estimates and extrapolations by the department, was estimated to be up to £67 million. In addition, the department estimated that it made irregular payments of £30 million. It is the £67 million and £30 million figures that make up the total estimate of £97 million.

The Department for Education and Skills Resource Accounts in 2001/02 is available to view here: https://dera.ioe.ac.uk/4556/6/HC 316 02.03.pdf.