Tesco offers wage to placement workers in bid to head off benefits controversy

Tesco has offered to pay a wage to youngsters taken on as part of the government’s under-fire work experience scheme.

The supermarket giant yesterday moved to head off criticism over its participation in the controversial ‘workfare’ scheme, under which youngsters faced the possibility of losing their benefits if a four-week placement was not completed.

Those taking part can now choose to be paid by Tesco during their placement, with a permanent role guaranteed at its conclusion, or to continue receiving benefits throughout.

Tesco said it had suggested to the Department of Work and Pensions that threat of losing their benefits should be removed “to avoid any misunderstanding about the voluntary nature of the scheme”.

“We know it is difficult for young people to give up benefits for a short-term placement with no permanent job at the end of it,” said UK chief executive Richard Brasher (pictured).

“So this guarantee that a job will be available, provided the placement is completed satisfactorily, should be a major confidence boost for young people wanting to enter work on a permanent basis.”

The move comes after Tesco found itself subject to mounting criticism in the media and on social networking sites over its participation in the scheme, while workers’ rights protestors forced the temporary closure of one of its stores in south London over the weekend.

Rival Sainsbury’s has already withdrawn from the scheme, with several major retailers following suit this week.