Training funds shake-up to hit SMEs’ pockets
Nov 02 2001
Entrepreneurs will have to seek alternative means of funding skills training from 7 December as the Individual Learning Accounts (ILAs) scheme in England is suspended from that date.
The programme provides 80% off the cost of approved computer and maths courses and 20% off a range of other approved courses, which improve a person's vocational skills, for example.
Secretary of State for Education and Skills Estelle Morris commented that the scheme has attracted up to 2.5 million account holders. It is this rapid growth of the scheme, "exceeding all expectations", which has caught the Government by surprise.
"[It is] causing us to think again about how best to target public funds in this area and secure value for money," Morris said.
There is also concern about the way some accounts have been marketed and sold. Morris pointed out that there is growing evidence which suggests some companies are abusing the programme, "by offering low value, poor quality learning."
Existing account holders will still be able to use their accounts provided that the learning is booked with the ILA Centre by the deadline. No new accounts will now be opened.
However the demise of the ILA may yet have a silver lining, as the Treasury this week welcomed a joint report on productivity by the Confederation of British Industry and the Trades Union Congress.
Amongst other proposals, the Government-sponsored report put forward the idea of tax credits to employers who provide adult skills training. Commentators suggest this may be a signal that the Chancellor will use his pre-Budget speech, due shortly, to announce tax relief to help improve training and skills.
Entrepreneurs and small business owners who would like to find out about sources of help to fund their own and their employees’ skills training, should contact their local Business Link.
To find your local office visit www.businesslink.org or ring the Business Link contact centre on 0845-600 9006.
With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .
(31/10/01)