Page last updated at 11:59 GMT, Wednesday, 29 February 2012

Greggs suspends unpaid work placement scheme

The bakery firm Greggs has suspended its participation in the government's unpaid work experience scheme after raising concerns over the possibility that participants could lose benefits if they did not complete the placement.

The scheme allows unemployed young people to do unpaid work for up to two months without losing benefits.

It is aimed at 16 to 24-year-olds on jobseeker's allowance, and allows them to work for a company for up to eight weeks.

Chief executive Ken McMeikan told Newsnight's Liz MacKean that they were not fully briefed about this element of the scheme, and could not continue while the penalty was possible.

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