Supplementary memorandum from Mr John
Healey MP (DfES 10)
I thought it would assist the Committee if I
set out some key figures on ILAs and set out in more detail why,
as I explained to the Committee on Wednesday, it is not possible
at present to provide a forecast of the end of year overspend.
The total budget available in England over the
two years 2000-01 and 2001-02 is £202.1 million, which as
you may know includes both DfES budget allocations and £115.1
million which has been recycled from TEC resources. I explained
to the Committee that, as a result of the fact that demand for
ILAs far exceeded original expectations, we have had to spend
more on the programme and more quickly than originally expected.
DfES records show that expenditure on the programme in the 2000-01
year and the 2001-02 year up to 23 November totalled £260.9
million, which would suggest an overspend of £58.8 million
at that point.
Again, as I explained to the Committee, there
are still significant numbers of payments due in respect of claims
already made by learning providers and committed expenditure in
respect of learning already booked by providers on the ILA Centre
system before it was shut down on 23 November. Because of the
police investigation into allegations of fraud and abuse we do
not, currently, have access to the Capita's ILA Centre system
on which the data is stored. We also need to validate both the
claims and the bookings held on the ILA Centre system and take
action to recoup monies which have been improperly claimed. As
a result it is not possible to estimate the extent of the additional
financial commitment at present.
Officials are currently in discussion with the
police to agree the basis upon which the Department and Capita
can resume access to the ILA Centre system without the risk of
compromising the investigation. I anticipate that these arrangements
will be established in the next few days and would expect to be
in a position to provide you and members of your Committee an
estimate of the total potential overspend within the next 10 days.
The overspend will be met from within the Department's existing
I hope that this provides members of the Committee
with helpful clarification of the up to date position.
30 November 2001