Tories curtailing aspiration by failing to ban unpaid internships, Labour says

Labour’s Justin Madders has accused the government of curtailing aspiration by failing to crack down on unpaid internships after analysis found that the minimum cost of doing a one-month internship in London has risen by 15% since 2018.

The research from the Labour Party estimated that interns would spend an additional £160 while doing a month-long internship in London compared to 2018 as a consequence of increases in the cost of rent, bills and food.

The shadow employment minister said: “It’s a disgrace that under the Tories, today’s young people are still being shut out from certain career pathways because they can’t afford to work unpaid for weeks on end.

“A fair day’s work should mean a fair day’s pay. This Tory government has continuously resisted calls to properly ban unpaid internships over the years despite the overwhelming evidence that it acts as a block on social mobility.

“This means many jobs are increasingly the preserve of those who can afford to take on an unpaid internship, which is often seen as an essential foot on the ladder for many jobs. It cannot be right for the Conservatives to curtail aspiration by failing to tackle these financial barriers.

“Labour will give every young person the opportunity to succeed. Our new deal for working people will ban unpaid internships and open up routes into employment for more students and young people. We will also boost protections in work through the introduction of a single status of worker with legal rights from day one.”

The research – based on data from the Sutton Trust and the Office for National Statistics – estimated that interns in Manchester would be required to spend £127 more in 2022 than they would have done in 2018.

Labour noted that summer internships remain a “key route into employment” for young people but argued that many could find themselves unable to take up opportunities given spiralling costs.

The party’s analysis found that the cost of rent was up 14% in London and Manchester, while transport costs in both cities had risen by approximately a quarter. The overall increase in the cost of doing an internship in the capital was estimated to be 15%. For Manchester, the figure was calculated to be 14%.

The rights of individuals completing internships varies, with most basic statutory employment rights depending on their being classified as ‘workers’.

Labour stressed that internships remain a “grey area” and that unpaid internships are “not explicitly prohibited”, meaning “bad bosses can still take advantage of young workers”.

The opposition party would ban the use of unpaid internships, except where they form part of an education or training course. Labour’s new deal for working people would also strengthen the employments rights of interns with the introduction of a single status of worker for all but the “genuinely” self-employed.

Labour launched its new deal for working people campaign in July last year, pledging to “fundamentally change our economy” and “make Britain the best place to work”. The five principles of the campaign are as follows:

1. Security at work – Better and fairer workplaces by giving workers full rights from day one on the job; outlawing fire and rehire; a new right to work flexibly; and strengthened trade unions.
2. Quality jobs – A strong industrial strategy that uses government contracts to support British businesses so we buy, make and sell more in Britain, delivering investment in high-quality, well-paid green jobs in the industries of the future.
3. A fairer economy – A fair and level playing field on tax between the multinational giants and local businesses on the high street; and tackling harassment and discrimination at work so everyone can get on.
4. Opportunity for all – A jobs-promise for young people with a guarantee of quality education, training or employment; and create tens of thousands of apprenticeships by ending the Treasury raid of the apprenticeship levy.
5. Work that pays – Make sure that work pays paid wages that people can raise a family on with a real living wage of at least £10 an hour; and more workers covered by collectively agreed deals which boost pay.