It is in everyone's interest that we clamp down on fraud and irregularities

Geoff Snell, LSC

These cases involve several millions of pounds and the majority focus on funding overclaims and the falsification of student numbers.

Almost 50% of the allegations are brought by "whistleblowers" working at colleges or with providers, 38% are reported by third parties and 14% are uncovered directly by local LSCs.

"It is in everyone's interest that we clamp down on fraud and irregularities," said Geoff Snell, head of the special investigation unit.

'Significant amounts'

"These alleged frauds and irregularities do involve significant amounts of money - several million pounds is at risk in the 33 cases we are investigating at the moment, although it is impossible to give any firm figure at this stage," said Mr Snell.

"We actively investigate, where sufficient information is available, every case that is reported to us," he said.

"Where we suspect criminal activity, we refer cases to the police or the Serious Fraud Office, depending on size, costs and complexity."

Where the LSC could retrieve funds paid to a training provider, it would endeavour to do so, he added.

The LSC plans to run awareness seminars later in the year to help colleges and training providers spot potential breaches and "act quickly to nip them in the bud".