Poundland has become the latest business to exit from the government’s Work Programme work experience scheme for the unemployed.

The value retailer was one of the first businesses to attract controversy to the scheme, which requires welfare recipients to do unpaid work to receive their benefits. 

In January, a university graduate launched a judicial review after being told to stop volunteering at a local museum and do unpaid work in a Poundland store or lose her benefits.

Cait Reilly, 22, said the placement was contrary to human right legislation on force labour and thus breached her human rights.

Poundland’s decision today follows days of controversy surrounding the scheme which requires welfare recipients to do unpaid work to receive their benefits. A number of business and charities have pulled out, including Marie Curie Cancer Care, Shelter and Scope.

It’s been one of the worst weeks for the government’s biggest public sector programme to get the unemployed back into work.

One of its largest prime contractors A4e has come under sharp scrutiny after four of its former staff were arrested for alleged fraud. Labour MP Margaret Hodge has called on the Department for Work and Pensions to suspend all of A4e’s Work Programme contracts until the police investigation is completed.

And A4e’s founder Emma Harrison has stepped down as the David Cameron’s ‘family tsar’ to avoid becoming a ‘distraction’.

A4e has Work Programme contracts in five areas across the UK, which have a combined value of £435m, and counts a number of charities as sub-contractors, including Turning Point and the Prince’s Trust.

Andrew Dutton, A4e Group CEO, has said:
“A4e has zero tolerance towards fraud, and any instance of fraudulent or otherwise illegal activity is completely unacceptable. We take our responsibility very seriously, and we are committed to using taxpayer’s money effectively and efficiently to deliver the best services to the public.”