The government-funded University for Industry, or Ufi, which operates an e-learning network to improve literacy, numeracy, and employability skills among adults, is failing to attract users, according to a report by the House of Commons Committee of Public Accounts.

Since it’s inception in 1998, Ufi has provided 4 million courses to 1.7 million people via the network called learndirect, but the committee report says that a majority have not taken any classes in the last three years. And about half of the users don’t appear to meet their goals.

Furthermore, the report found that even though the Ufi’s mission is to increase productivity and employability, the company has not taken many steps to work directly with employers, instead focusing on individuals. Only 37 percent of small and medium businesses know that learndirect is intended to help them. Of those businesses, only 4 percent use the service.

In the report, MPs make several suggestions to improve Ufi’s performance. At the top of the list is devising a strategy to work more directly with employers. The committee recommends working with the Small Business Service and sector skills councils.

MPs say Ufi also needs to reduce spending on management and marketing, which is currently at 30 percent of the operating budget. And a business plan must be drawn up to show how Ufi is going to bring in £40 million a year. The programme was expected to be self-funded by July 2005, but has only recovered £12 million in commercial income thus far – a long way off from the £930 million given in education funding over the first seven years.

While it is clear that a service like this is needed – at present time only 40 percent of employers provide training for their employees – this is a debacle of epic proportions. On their website, Ufi say that since the November committee hearing, they have reorganised the company, which will result in a £10 million-per-year savings and developed a plan to be earning £44 million-per-year from private sector employers by 2011. It’s a start…