Industry bodies are calling for a national IT accreditation scheme following the suspension of the government's flagship Individual Learning Account (ILA) scheme in England.
The ILA project formed the backbone of a national skills strategy, but was exploited by companies which took the money without delivering the promised training.
The government has confirmed that 279 businesses, mainly offering IT courses, are now under investigation.
Colin Steed, chief executive of the Institute of IT Training (IITT), maintained that the news reaffirms the need for an industry wide accreditation scheme. "Why was the government giving out money when it wasn't sure the training companies were bona fide?" he asked.
The IITT was set up in the late 1980s to provide national IT accreditation, but Steed claims that it was never able to achieve its potential because of lack of investment. It continues to run with 140 accredited members without the support of the government.
Karen Price, chief executive of national training organisation the eSkills NTO, recognised the need for a government-led scheme to address quality issues. "We're looking to see if there's a role we can play in bringing together government agencies and accreditation schemes," she said.
Under the ILA scheme, individual learners received subsidies of up to 80 per cent of the cost of some IT training courses.
A spokeswoman for the Department for Education and Science said that existing account holders who have already started courses would continue to be supported, provided they have booked by 7 December.
Anthony Miller, senior analyst at Ovum Holway, pointed out that the scams should have been foreseen. "Any government scheme that throws money at a problem is another opportunity for some companies to make a fast buck," he said.
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