The UKeU's public sector partners are awaiting the outcome of a review that could result in major changes to the operations of the government-funded elearning scheme.

The Higher Education Funding Council for England (Hefce) is currently in discussions with UKeU to agree a restructuring plan.

Computing last week disclosed that the scheme has consumed £28m and attracted just 900 students, at a cost of £30,000 per student.

'UKeU's service and operations are not immediately affected and the company will continue its activities, pending the conclusions of the discussions on restructuring,' said a statement from UKeU.

The online learning project was launched in February 2000 and the government allocated £62m to the project to help students across the world earn online degrees from UK universities.

UKeU has also signed a number of agreements with leading public sector organisations.

Jonathan Drake, head of lifelong learning at BBC Worldwide Learning, which promotes UkeU's courses through its site, is unsure what effect the reconstruction plan will have.

'UK universities will continue to provide online courses,' he said. 'The biggest shift for us is that, if there is a change, we'll have to work with the universities individually.'

The Army, alongside Bournemouth and Leeds Metropolitan Universities, offers an online foundation degree to its personnel and UKeU is providing the computer platform for course delivery.

'We await the outcome of the review with interest, but at present there is no reason to suppose that the UKeU will not continue to provide the platform for this course,' said an Army spokesman.

UKeU has also helped market a leadership programme to foreign students for the Cabinet Office. A spokeswoman said the Cabinet Office is 'looking forward to the outcome of the review.