Labour’s proposal to ban unpaid internships, with exceptions only for those integrated into educational or training courses, represents a significant intervention in addressing the entrenched inequalities in the UK job market.
Unpaid internships have long been a contentious issue, criticised for perpetuating social inequality and exploiting young workers who contribute valuable labour without receiving financial compensation. Beyond these economic and social concerns, there is a crucial aspect of wellbeing that is often overlooked. By ensuring that all work is fairly compensated, Labour’s reform not only promotes accessibility to career opportunities for individuals from diverse socio-economic backgrounds but also directly contributes to the wellbeing of interns, setting a precedent for healthier workplace practices.
The current state of unpaid internships in the UK reveals a troubling picture. A study by the Sutton Trust in 2020 found that around 39% of internships in the UK are unpaid, with many of these positions concentrated in highly competitive industries such as media, fashion, and politics. The financial burden of undertaking an unpaid internship can be prohibitive, particularly in cities like London, where living costs for an unpaid intern can reach approximately £1,100 per month. The Institute for Public Policy Research (IPPR) further estimated that unpaid internships could cost an individual up to £6,300 over a six-month period in London. These figures highlight the significant barriers to entry faced by individuals from lower-income backgrounds, who may be unable to afford to work without pay, thus exacerbating economic disparities. But beyond these numbers lies a deeper issue: the wellbeing of those who feel compelled to accept such roles.
The legal framework surrounding unpaid internships is complex. The UK’s National Minimum Wage Act 1998 mandates that all workers over the age of 16 receive at least the minimum wage. However, the Act includes exemptions for internships that are part of a higher education course, as well as voluntary positions and work experience placements lasting under one year. The landmark case Hudson v TPG Web Publishing Ltd [2011] demonstrated the intricacies of these laws. In this case, the Employment Tribunal ruled that an intern who had been unpaid during her internship was entitled to back pay because she had performed tasks that would typically be done by a paid employee. This case highlights the fine line between legitimate work experience and exploitation and illustrates the challenges of enforcing legal protections for interns. It also raises questions about the psychological impact on interns who may feel their work is undervalued or taken advantage of.
Labour’s plan to ban unpaid internships is centered on the principle that all work should be fairly compensated. The core of the proposal is to prohibit unpaid internships unless they are part of an educational or vocational training programme, ensuring that internships are either part of a structured learning experience or paid in accordance with the National Minimum Wage Act. The exceptions to this rule—internships that are part of a recognized educational course, such as those integrated into university degrees or vocational training programs—are intended to ensure that students can still gain valuable work experience as part of their formal education without imposing additional financial burdens on employers.
One of the key motivations behind this policy is to address socio-economic inequality. By banning unpaid internships, Labour aims to level the playing field, making it easier for individuals from all backgrounds to access career opportunities. This move could lead to greater diversity within industries that have traditionally been dominated by individuals from more affluent backgrounds. This commitment to fairness directly ties into the wellbeing of young workers, who are often pressured into accepting unpaid roles in the hope of securing future employment.
The wellbeing of interns is not merely a matter of financial compensation, though that is a critical aspect. When young workers are paid for their contributions, it sends a powerful message that their work is valued and respected. This acknowledgment can boost their self-esteem, reduce anxiety related to financial insecurity, and promote a healthier work-life balance. Conversely, unpaid internships can exacerbate stress, lead to burnout, and even deter individuals from pursuing their desired careers due to the financial and emotional toll. Thus, ensuring that interns are paid for their work is, in itself, a form of wellbeing—a recognition that their time, effort, and skills are worth something tangible.
However, the policy also presents challenges for employers, particularly in terms of increased costs. Many employers, especially small businesses and startups, may struggle to afford to pay interns, potentially leading to a reduction in the number of internship opportunities available. To adapt to this change, employers may need to re-evaluate their internship programmes, focusing on providing more structured and meaningful experiences that justify the cost of paying interns. This could result in a shift towards fewer but higher-quality internships, which would benefit both interns and employers in the long run. Importantly, this shift would also contribute to the mental and emotional wellbeing of interns, who would gain more from their roles in a supportive and structured environment.
With paid internships becoming the norm, employers may be able to attract a more diverse range of candidates, leading to a richer talent pool. This diversity could bring fresh perspectives and ideas to industries that have traditionally lacked representation from certain demographic groups. Additionally, paid internships could encourage more serious investment in training and development, as employers recognise the value of nurturing talent that could become future employees.
Beyond the legal implications, Labour’s proposal could contribute to a broader cultural shift towards valuing and compensating all forms of labour. This shift might also spark further discussions about other forms of unpaid work, such as volunteer positions and internships in non-traditional industries.
Labour’s plan to ban unpaid internships represents a significant step towards promoting fair opportunities, reducing socio-economic inequality, and enhancing the wellbeing of young workers in the UK job market. By ensuring that all work is fairly compensated, this policy has the potential to create a more inclusive and diverse workforce, benefiting both individuals and industries. However, the success of this reform will depend on its implementation, enforcement, and the willingness of employers to adapt to these new standards. As the UK continues to grapple with the challenges of unpaid labor, this policy could mark a turning point in the ongoing effort to create a more equitable and just society, one that truly values the wellbeing of all its workers.
Emma Gross
Emma was admitted as a solicitor in 2012 having graduated from the University of Birmingham and completed her LPC at the London College of Law. Emma headed up the Employment Department at her previous Marylebone firm before joining Spencer West. Keenly commercial, she has handled complex employment tribunal cases, negotiated difficult settlements and advised on fair and reasonable redundancy procedures. Emma also advises on all aspects of data protection and GDPR compliance.
