The government's work experience scheme has faced fresh setbacks as both Superdrug and Tesco have reviewed their involvement, amid concerns candidates risked losing their benefits by not taking part.

Superdrug said it would not take on any new interns until it had "clarified the situation with the government". And Tesco is now offering candidates a four-week paid placement with the company, with a guaranteed permanent job on successful completion, as an alternative to the scheme.

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	The news came after C+D reported that Superdrug, Asda and Tesco were involved in the controversial initiative. Under the scheme, unemployed jobseekers can be forced to work unpaid for eight weeks or risk losing their benefits.

Superdrug said one in ten of its store vacancies had been filled by a former participant in the work experience scheme this year. But it stressed that it took its responsibilities as an employer "very seriously".

"We work with a number of bodies to give people the opportunity to get a foot on the jobs ladder," a company spokesperson explained. "We are supportive of any initiative that is voluntary and where candidates do not lose their benefits if they choose not to participate, and are working closely with government ministers to clarify the situation."

Meanwhile, Tesco revealed that one-fifth of its 1,500 interns had gained employment with the company, but acknowledged it was "difficult" for young people to face losing benefits over a short-term placement. "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," said Tesco UK chief executive Richard Brasher.

The scheme had come under fire from C+D readers earlier this month. Responding to the news that pharmacy employers were involved, one reader branded it "nothing less than slave labour" on the C+D website. Meanwhile, others questioned whether pharmacists would face a similar route into employment in future.