South Ayrshire Council have been named and shamed as one of more than 500 companies using free labour from jobseekers.
The council is the only Scottish local authority revealed as taking part in the controversial Mandatory Work Activity scheme, alongside firms such as Tesco, Asda and Morrisons.
All 534 organisations on the list were named as “placement providers” between July 2011 and January 2012.
More than 100,000 jobseekers were put on the “workfare” scheme, which forced them to work for 30 hours a week at no cost to firms or risk losing their benefits.
The scheme was closed in April this year, with many on the list pulling out after a public outcry over what was seen as exploitation of the unemployed.
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Ayr, Carrick and Cumnock MP Corri Wilson blasted the scheme and said: “Workfare was a demeaning and punitive scheme which treated the unemployed as if they were criminals.
“It was unjust, immoral and counterproductive. Local authorities do some fantastic work improving employability opportunities and supporting skills training.
“According to the UK Government’s own research, this scheme didn’t even improve employment prospects, and South Ayrshire Council really shouldn’t have had anything to do with it.”
Despite appearing on the official DWP list, South Ayrshire Council said they did not participate in the programme.
A spokesman said: “South Ayrshire Council do not take part in the Mandatory Work Programmes delivered by the DWP.
“Our focus remains on our existing employability programmes, which support people of all ages looking for work.
“This includes Modern Apprenticeships, the Work Out! programme for young people making the transition from education into work, and services for adults facing barriers to work.”
The names were finally revealed after a four-year court battle between campaigners and the Department of Work and Pensions came to a head last week, with three top judges at the Court of Appeal throwing out the DWP’s opposition to revealing the list.
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The DWP fought against revealing the names through a Freedom of Information request, despite being overruled by the Information Commissioner in 2012.
Taxpayers were forced to fund legal costs for both the DWP and the Information Commissioners Office during the battle.
Anti-workfare activist Frank Zola, who made the original Freedom of Information request, said: “Why should employers be able to hide behind the DWP’s cloak of secrecy and legal shenanigans?”
A DWP spokesman said: “Employment programmes help thousands of people gain new skills and experience to get into work.”
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