The government has ditched a contentious clause of its work experience scheme that stripped young people of benefits if they left a placement, following pressure from businesses and campaigners.

Grayling: 'Employers continue to have the protection with the use of sanctions for gross misconduct'

The work experience scheme has been controversial owing to the benefit sanction and concerns young people were being used as "slave labour" in menial jobs.

Those taking part in the eight-week scheme were able to quit in the first week of the placement, but faced losing their benefits if they quit after that point.

In recent weeks a number of companies, including Poundland and Burger King, announced they would no longer be taking part.

A spokeswoman for the Department for Work and Pensions confirmed that, after a meeting involving employment minister Chris Grayling and employers, the sanction of removing a young person’s benefits if they left a placement after a week has been scrapped.

In a statement issued following the meeting, Grayling reiterated that the scheme is voluntary but added that the sanction of removing benefits will remain in place in some circumstances.

"Employers continue to have the protection with the use of sanctions for gross misconduct," he said, adding: "It has never been an issue with the programme as only 220 people have been sanctioned since it started."

Grayling also said that major employers Airbus, Center Parcs and HP Enterprise Services are joining the work experience scheme and that the department has had contact with more than 200 small or medium-sized enterprises over the past two weeks "also wanting to get involved".

The DWP spokeswoman said that of the 220 sanctions since the scheme began, "the majority" were as a result of gross misconduct.

Earlier this week, the British Youth Council called for a meeting with government ministers to review the work experience element of the Youth Contract, suggesting a "new code of conduct to protect young people from exploitation".