The government has retreated from its manifesto promise to ban unpaid internships, opting instead for guidance and enforcement.
The government has retreated from its manifesto promise to ban unpaid internships, opting instead for guidance and enforcement. We look at what this means for employers and why you should review your internship arrangements now.
In July last year, we explored Labour's commitment to ban unpaid internships as part of its New Deal for Working People (see here). The government had pledged to outlaw unpaid internships "except where they are part of an education or training course", framing the policy as central to its social mobility agenda. Now, following the government's response to its Call for Evidence, the government's next steps are clearer, albeit more tentative than previously suggested.
The manifesto commitment was clear: unpaid internships would be banned unless they formed part of a formal educational or training course.
Similarly, the policy rationale was straightforward: unpaid internships disproportionately benefit those who can afford to work for free - typically young people from more affluent backgrounds with family support. Research from the Sutton Trust found that 61% of internships undertaken by recent graduates were unpaid or underpaid, and graduates from working-class backgrounds were less likely to undertake an internship than their middle-class peers. A ban, the argument went, would level the...
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