Changes will save £10m annually
A change in the way learndirect is structured and managed has been announced this week.
The University for Industry (Ufi), the body charged with the running of network of national online learning centres will take sole responsibility for audit, training and guidance, systems, quality assurance and business development.
The new approach will begin on 29 July this year, and will mean Ufi contracting directly with learndirect providers.
This follows a 12 month review into the way learndirect is delivered.
It is estimated this will save Ufi £10 million annually, or one-fifth, on top of the 24 per cent reduction in running costs achieved over the past two years.
This will help to protect the subsidies for up to 25,000 learners.
Speaking on the announcement, Ufi Chief Executive Sarah Jones said: "learndirect is the largest single provider funded by the LSC in England . More than 1,000 people each day register for a course – many of them people who, without learndirect, would not have returned to formal learning. The changes we will be putting in place from July this year will enable us to maximise the impact of the funding we receive for learndirect, strengthen our relationships with learning providers, and continue to build on the high levels of satisfaction which learners report with learndirect e-learning."
Ufi will issue a tender notice to contract for learning provider next month. Each contract will be for two year commencing on 1 August 2006.
Learndirect was launched in 1999 with the aim to provide post-16 learning using new technology, to offer better employment prospects to people with few skills or qualifications.