The collapse of the government's Individual Learning Account (ILA) training programme could lead to large-scale job losses, according to training providers around the country.
The ILA system was scrapped in November after evidence of fraud was discovered and the police have started inquiries.
The Association of Computer Trainers (ACT) has warned that up to 3,000 jobs could be lost across the sector as a result and due to the government's lack of a successor scheme.
The ACT surveyed 250 training providers and found that nearly half the companies, many of which are small businesses, will have to shed jobs over the next three months.
According to the poll, course bookings are down by 70 per cent and 75 per cent of respondents said cuts will be needed within the next six months.
Meanwhile, the Education and Skills Committee announced a new inquiry into the ILA crisis and a preliminary meeting takes place on 23 January.
The inquiry will look at the Department for Education and Skills' lifelong learning strategy in England with particular reference to management, policy and a replacement for the ILA scheme.