A new report into the Individual Learning Accounts (ILA) scandal has concluded the scheme was open to fraud and has cost the tax payer as much as £97m.
The House of Commons Public Accounts Committee (PAC) claims that officials in charge of the scheme ignored warnings that the ILA system was open to abuse.
The Government's flagship training initiative was wound up by the then Education and Skills Secretary, Estelle Morris, on 7 December 2001, amid concerns that some learning providers were abusing the system.
MPs on the PAC said officials administering the ILA system were blinded to the fraud by their desire to cut bureaucracy and attract new training providers.
The report goes on to suggest ILA officials were driven by their enthusiasm to increase the number of people training, but criticises the risk assessment and management procedures.