Morrisons will hand government subsidies potentially worth millions of pounds to charities involved in training young people.
The supermarket could be eligible for handouts totalling £4.5m, according to the Financial Times, as a result of plans to create 2,000 jobs for young people.
But Morrisons said it would divert the cash to Future for Growth to allocate to youth training projects.
“Investing in [young people] before they come to us is the best way, so we can offer them real jobs,” said Morrisons’ HR chief Norman Pickavance.
“What we wanted to do was channel government funds earlier.”