Weston College gave convicted paedophile Darren Kavanagh the money without carrying out DBS checks.
A convicted paedophile received more than £36,000 of public money to employ students without undergoing DBS checks.
The college said there was no government "guidance" that DBS checks were required for scheme organisers. The £2bn scheme - which closed in August - was launched by the government in September 2020 to provide funding for employers to create jobs for 16 to 24 year olds on Universal Credit.
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