Update: 12:20

The government has admitted that its handling of the ill-fated individual learning account scheme, axed amid mounting concerns over fraud, "fell a long way short of standards" expected. In its response to a damning report on ILAs from the public accounts committee, the Department for Education and Skills says it is "very sorry" for the difficulties caused but adds: "For all their faults, ILAs unleashed a real appetite for learning." A replacement scheme is now being devised in the light of lessons learned.