Government considers ban on unpaid internships

As the House of Commons prepares to debate plans to pay adults the national minimum wage, ministers are considering a ban on unpaid internships.

According to the Chartered Institute of Personnel and Development (CIPD), the proposed national minimum wage (workplace internships) bill would require companies to pay adult interns at least the minimum wage, but would exclude school-age children, apprentices and full-time university and college students who are completing work experience as part of their studies.

The review comes amid concerns that young people with poorer socioeconomic backgrounds cannot afford their living costs without being paid a wage, and are therefore put off applying for unpaid internships.

Katerina Rudiger, Chief Community Officer at the CIPD, supports the proposed ban. She said: “Unpaid internships aren’t good for social mobility – a lot of young people desperately need that work experience to kick-start their careers and are effectively locked out of the labour market because they can’t afford to work unpaid. Banning unpaid internships would create more opportunities for young people from different backgrounds.”

James Reed, Chairman of REED recruitment, said: “Internships can be extremely beneficial and provide invaluable experience for many young jobseekers. However, employers shouldn’t ask an intern to work for an extended period of time for free. Given the cost of living, these types of opportunities will give those who have access to financial support from elsewhere an unfair advantage.

“At REED we pay all of our interns for their time because we think it’s the right thing to do. However, if an employer is not in a position to pay an intern, it would be a real shame to completely close down the opportunity, which could provide a pathway into a good career. In these cases there should be robust guidelines to safeguard their terms, including, for instance, length of placement and payment of expenses.

“Everyone should have an equal opportunity to access competitive industries and internships can be key to this. While jobseekers may feel it’s worth taking a financial hit for a limited period of time to gain relevant experience, guidelines should be in place to protect them and to help level the playing field.”

MPs will debate plans to pay interns at least the minimum wage on Friday 4 November.