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MARKET REPORT - CAPITA BIDS FOR FAILED LEARNING ACCOUNTS

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The government intends to re-launch its failed Individual Learning Account system and Capita hopes to pick up the c...
The government intends to re-launch its failed Individual Learning Account system and Capita hopes to pick up the contract to run the next system despite the collapse of the scheme with an overspend of£60m in the first two years.

The ILA scheme aimed to 'widen participation in learning and help overcome financial barriers to learning faced by individuals'. It provided government subsidies for people to spend on training, but fraud became so endemic the scheme had to be scrapped.

A report from the Department for Education & Skills said: 'We suggest that there were serious failings by the DfES in the running of the ILA scheme. We also criticise Capita, the department's private sector contractor charged with key elements of ILA delivery, for its shortcomings.'

Capita intends to bid for the next scheme, although the company will introduce a series of improvements on the way it is run. A spokeswoman for Capita said: 'The committee asked us to provide some ideas of how a successor ILA scheme might be developed and we are working alongside the department to develop those ideas still further.'
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