Greggs echoes work scheme concern

23 February 2012 Last updated at 22:51 ET

Several companies have withdrawn from the scheme amid concerns over benefit payments

Bakery chain Greggs has become the latest company to voice concern over the government's controversial work experience scheme for jobless people.

Chief executive Ken McMeikan told the BBC he was not be comfortable with young people potentially losing their benefits if they leave the initiative.

Critics say the Get Britain Working project is "slave labour" that exploits people on benefits.

The government has insisted that the scheme is an "excellent" opportunity.

Sainsbury's, Waterstones, Matalan and Maplin have already left the scheme, and Tesco and Argos have expressed concern.

'Back on benefits'

Mr McMeikan told BBC Two's Newsnight programme that he and other business leaders would meet the government next week to discuss aspects of the scheme.

He said: "If after a week or more you decide as an individual that it's not working for you and you leave the scheme, we don't believe at Greggs that the benefits should be taken away.

"Our view is if they are volunteering to come on this scheme, and for whatever reason they come off, then they go back onto benefits.

"I would be very uncomfortable if the response that we get next week is that [the government] would continue with the scheme as it is at the moment where, if after more than a week into the placement, people come off then they lose benefits."

But he added: "There is a small minority of people out there who don't like the scheme.

"When you speak to the young people that have gone through the scheme, they actually like it and they want us to continue offering it as employers."

Financial incentives

Under the scheme job centres can arrange unpaid work experience placements for unemployed people, which are initially voluntary.

But if they complete a week of work they have to remain in place for up to two months, or risk losing their benefits.

Kirsty McHugh, of the Employment Related Services Association, said: "It seems that some issues around the benefit rules are getting in the way of people volunteering and companies wanting to provide work placements.

"If that's the case we think the government should look at the benefit rules again."

The programme offers the long-term unemployed work experience or training, while providing financial incentives to employers.

If jobseekers choose to take part but then fail to turn up without good reason, their benefits could be removed. This has led critics to question whether the placements are really "voluntary".

The scheme has attracted adverse publicity recently, with opponents claiming large companies are using it for cheap labour.

'Demonstrate potential'

But the Department for Work and Pensions has said it is an "excellent scheme that we know is making a real difference to the job prospects of young people".

Employment Minister Chris Grayling told Newsnight: "The work experience scheme is a voluntary scheme to provide young people who are unemployed with an opportunity to get into the workplace and demonstrate to a potential employer what they can offer.

"Or they can gain some experience to take to an interview elsewhere.

"The scheme's voluntary, they will go and meet the potential employer, if they're happy they will start the placement, if that placement doesn't work out they can leave in the first few days.

"If they decide to leave at a later date we will investigate the reason why. If they've left without good reason they could face a sanction.

"That sanction is the same sanction they might face for not turning up for a fortnightly job interview."

24 Feb, 2012

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Source: http://www.bbc.co.uk/go/rss/int/news/-/news/uk-politics-17150593
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