The Training and Employment Network reported last month that the government has been unable to persuade any bank or building society to hold the funds for Individual Learning Accounts (ILAs) when they are launched nationally in the Autumn.

Instead, training providers will receive ILA contributions directly when the learner contributes, and a `virtual account' will be created for each learner, together with a `smart card' offering discounts on learning materials. Learners will also receive an annual `learning record' of training they have undertaken in the last year.

The pilot scheme which is already underway has allowed learners to claim a £150 subsidy from the government once they make an initial contribution of £25. 100,000 people have taken up the offer so far.

There is an Individual Learning Accounts newsletter now on-line which gives details of current progress towards full implementation of the scheme.