A tax break scheme to encourage workers to improve their computer skills has won praise from employer and employee groups.

The government's Home Computer Initiative allows employers to implement a tax-exempt loan scheme for computer equipment for their employees to use at home.

The aim is to increase IT literacy in the UK. Recent research has shown that 75% of current jobs and 90% of new jobs require ICT skills.

Along with boosting general IT skills, the scheme also makes it easier for employees to take on online or computer-based training at home.

For employees, the scheme could reduce the cost of obtaining a computer by up to 33% for basic rate tax-payers and up to 41% for higher rate tax-payers.

The TUC said that the scheme had the "strong support" of unions, while Digby Jones of the CBI recommended that business take up the scheme "as soon as you can".

More details about the HCI scheme are available at the Department of Trade and Industry website.