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Concerns Tasmanians are being lured into expensive, unsuitable training courses

Tasmanians have been warned not to be lured in to costly training courses with promises of free laptops and iPads.

Community advocates were worried illiterate Tasmanians were being locked into contracts, but did not have the skills needed to complete the study.

A study released earlier this year showed Tasmania had the highest levels of illiteracy in the country, with about half of the population unable to read or write properly.

John Hooper from the Tasmanian Association of Community Houses said he was worried about an influx of students signing up to online diplomas.

"These companies are signing people up without really filtering them properly [or asking] 'is this the best step for them' as a pathway into training and employment," he said.

In July, the Commonwealth expanded the higher education loan scheme to include some vocational education training.

Mr Hooper said that opened the door for unethical recruiters.

"I think what they are playing on unfortunately, is people's concerns about needing to get into training, that it may potentially affect their welfare payments," he said.

The Federal Government is also still trying to pass its earn or learn policy in Parliament, which would see unemployed people under the age of 30 forgo dole payments for six months unless they were training or in work.

Critics of the scheme said it would encourage many people to undertake training they did not need to get access to welfare payments.

Two in three 'don't have the skills'

Training provider Simon Wiggins was worried some Tasmanians were falling into a trap.

"It's a way for [Registered Training Organisations or RTOs] to get access to Government funding, so the interests, from the RTO's perspective, is based on their financial returns, not on the wellbeing of the student," he said.

Mr Wiggins said much of the training was done online and largely did not work for a Tasmanian market.

"There's not necessarily employment relating to the qualifications that they are undertaking," he said.

He said brokers had set up outside centrelink offices and in shopping centres, offering free laptops and iPads to prospective students.

Advocates have reported a Community House in Hobart talked a woman out of signing up to a course because she could not use a computer.

Steve Cook from the Council for Adult Literacy said the state's literacy rates put many people at risk.

"Two in three people who sign up for apprenticeships don't have the skills, don't have the writing, reading and maths skills to complete those courses," he said.

Mr Cook said training organisations needed to act responsibly.

"I think it's essential that RTOs that sign students up, also offer support where that support's needed," he said.

The body regulating training providers has been given almost $70 million to address "unscrupulous activities, in particular from brokers".

It is also holding information sessions in Launceston, Devonport and Hobart next month.