Morrisons is to give away Government subsidies it will receive to create jobs.

The grocer is to offer 2,000 jobseekers who have come through the Government’s Work Programme.

The grocer will offer the jobs to young people as part of the £1bn “youth contract” and give up the subsidies it gains to charities, the Financial Times reports.

Morrisons will donate monies gained from the scheme to Future for Growth – the all-party parliamentary group to create jobs for the young which represents charities including the Prince’s Trust.

Jobseekers will come into the positions having completed the Government’s Work Programme, the back-to-work programme which came under fire earlier this year due to the controversial Work Experience strand of the scheme.

Morrisons is likely to pass on more than £4.5m through the initiative.

Morrisons head of human resources Norman Pickavance said: “Investing in them before they come to us is the best way, so we can offer them real jobs.

“What we wanted to do was channel Government funds earlier.”

Morrisons is part of the 16-24 alliance which includes Eon, Phones4U and Barclays and hopes to create 50,000 new jobs.

Last night, the BBC’s Panorama programme alleged Morrisons had received more than 10% of the Government’s £1.4bn apprenticeship scheme last year.

Morrisons has also introduced a new brand named Fresh across all of its produce lines. The new packaging will emphasise its commitment to British sourcing and highlight its unique vertical integration model.