Willenhall-based Poundland to continue voluntary work scheme

Willenhall-based discount stores chain Poundland has announced it is to continue its involvement with the Government's voluntary work experience scheme.

It comes after the High Court yesterday rejected claims from unemployed graduate Cait Reilly that making her work there for free was forced labour.

Poundland, which is based off the Black Country Route and has more than 410 stores, suspended its involvement with the mandatory scheme back in February.

Miss Reilly, aged 23, had alleged that taking part in the Government-backed project at her local Poundland in Kings Heath, Birmingham, amounted to "slave labour".

But, following yesterday's hearing, company spokeswoman Kate Downie said: "Poundland strongly believes in the importance of work experience for young people and has hired many of its colleagues permanently through that route.

"More than 1,000 people have carried out voluntary work experience in our stores.

"Out of this number an encouraging 25 per cent have left their work experience early because they received a job offer and a further 10 per cent have gone onto employment with Poundland.

"The Government's back-to-work schemes have been ruled lawful and this means we can continue to support young people and provide them with an opportunity to pursue a career in retail on a voluntary basis."

She said Poundland remained committed to taking part in the voluntary work experience project, which is run through the Department of Work and Pensions and Jobcentre Plus.

The workfare programme can see job-seekers work up to 30 hours a week with no pay and no guaranteed job at the end. It was introduced in May last year for 18 to 24-year-olds.

Participants are allowed to work for up to two months on a voluntary basis for big-name companies.

But if they decide to drop out early, they could lose two weeks of their jobseekers' allowance.

Poundland plans to create 2,000 new jobs in the current financial year year after its turnover soared to the £780 million mark for the year to the end of March.

The chain, which has recently opened its biggest store so far in Wolverhampton at the former TK Maxx store in the Wulfrun Centre, is also considering expanding into Europe.

The chain, which has its headquarters in Wellmans Road where it also has 650,000sq ft of warehouse space, opened 62 new stores in 201-2012, creating 1,500 jobs and at least 60 new stores will open in the UK and Ireland within the current financial year – 22 are already open including its 400th in Haringey.

Poundland's first store opened 22 years ago in Burton upon Trent and the concept of selling everything for £1 quickly provided a hit with shoppers.

The chain's target is to reach 500 stores and £1bn turnover in 2014.