National Minimum Wage

National Minimum Wage
Interns
3.45 As part of our review of the labour market position of young people, our remit asked us to
consider those in internships. We look at their position in, and access to, the labour market in
this chapter, and their legal entitlement to the NMW in Chapter 4. In previous reports we
have noted the limited data available on the incidence of work experience or internship
opportunities. There is no official or legal definition of work experience or internship, although
the latter has been described as where an individual works so as to gain relevant professional
experience before embarking on a career (Gateways to the Professions Collaborative Forum,
2011). With no set definition of these terms, however, the evidence is obtained from ad hoc
surveys by interns groups, periodic surveys by bodies such as the Chartered Institute of
Personnel and Development (CIPD), and some very limited official data on the work
destinations of graduates.
3.46 In terms of trends in internship opportunities, we noted in our last report that CIPD’s Labour
Market Outlook survey had found an increase from 13 to 21 per cent between 2009 and
2010 in the proportion of employers who were likely to recruit interns in the next six months.
A further CIPD survey (summer 2011) found this higher level had been sustained. Another
source of evidence on the changing level of unpaid work experience opportunities is data
from the Destination of Leavers from Higher Education survey (Higher Education Statistics
Agency, 2011). The latest available figures from this source showed 1.7 per cent of graduates
were volunteering or undertaking unpaid work six months after graduating in 2009/10. This
compared with 1.6 per cent in 2008/09 and 0.7 per cent in 2002/03. Between its inception in
July 2009 and July 2011 nearly 35,000 vacancies had been advertised on the Graduate Talent
Pool’s (GTP) website. Nearly 53,000 graduates had registered with the GTP over the same
period.
3.47 Looking at evidence on what proportion of interns are paid, and at what rate, we again have
to piece together indications from various sources. Of the vacancies posted on the GTP
website between July 2009 and July 2011, nearly 21,000 (60 per cent) were paid. The
remainder were unpaid, or paid only expenses. A survey of work experience and intern pay
by XpertHR (2011b) covering 74 organisations found 44 per cent that offered work
experience for students or graduates did not normally pay them a wage, 28 per cent said
they always did, while 23 per cent said they sometimes did. Around 38 per cent did not pay
expenses, and 27 per cent paid neither wages nor expenses. Among those who paid a wage
the level ranged from £2.50 to £10.00 an hour. The CIPD’s Labour Market Outlook survey
(summer 2011) found the factor which most limited employers taking on an intern was
whether they needed or wanted one (32 per cent), with only 2 per cent of those surveyed
saying it was the minimum wage. A survey of interns conducted by Interns Anonymous and
submitted in evidence found the vast majority (87 per cent) had been expected to work a
fixed number of hours or specific days or had specific duties. However, fewer than 13 per
cent were paid at least the NMW in all of their internships. For around 28 per cent, none of
their expenses had been covered. Over 90 per cent said they had not received advice or
guidance at school or university regarding the NMW and internships.
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