Calls for Government Action as Unpaid Internships Persist Despite Social Mobility Efforts

The latest findings from the Social Mobility Employer Index reveal a troubling trend in the UK job market: some major employers are still offering unpaid internships, a practice deemed illegal under current regulations. This issue persists despite the ongoing cost-of-living crisis and widespread calls for fairer practices in the professional sector.

The Social Mobility Employer Index, now in its seventh year, assessed 143 organisations from both the public and private sectors, employing over a million people across the UK. The Index, which aims to highlight and reward companies for their efforts in promoting social mobility, has found that three organisations within its rankings are still not compensating their interns. This revelation is particularly concerning given the Index’s focus on enhancing social mobility and the equitable access to career opportunities.

National data on unpaid internships is limited, but previous research has indicated a significant number of unpaid positions. A 2018 study estimated that of around 100,000 interns in the UK, approximately 58,000 were not receiving any remuneration. The Social Mobility Foundation, which oversees the Index, has reiterated its stance that all internships should be paid at least the National Living Wage to ensure fairness and accessibility.

The Foundation’s recent survey of 1,000 young people from lower socioeconomic backgrounds underscores the impact of unpaid internships on career opportunities. Over half of the respondents (56%) indicated that paid internships would allow them to explore career options beyond their home areas, thereby making the job market more equitable.

Rt. Hon Alan Milburn, Chair of The Social Mobility Foundation, expressed his concern over the persistence of unpaid internships. “Britain faces a deep-seated problem with social mobility,” Milburn said. “The recent crises have exacerbated this issue, particularly for young people. It is disheartening to see that some employers are still failing to offer fair compensation for internships. The Government must intervene to ensure that all young people have access to paid opportunities.”

Sarah Atkinson, Chief Executive of the Social Mobility Foundation, highlighted the positive steps taken by some employers. “The Index shows that many employers, like PwC, are recognising the importance of social mobility and are making commendable efforts,” Atkinson said. “However, there remains a need for broader action across sectors such as Technology, Creative Industries, and Engineering. The SMF is ready to support employers in their social mobility initiatives.”

PwC, which topped this year’s Index for its contributions to social mobility, emphasised the broader implications of the issue. Kevin Ellis, Senior Partner at PwC UK, stated, “Social mobility is not only a societal issue but also a critical business and economic concern. A lack of opportunity limits the diversity and potential of our workforce. We’ve seen the benefits of a diverse workforce and remain committed to advancing these efforts.”

The problem of unpaid internships is brought into sharper focus through the experiences of individuals like Ciaron Tobin, a 20-year-old from Nottingham. Tobin, who undertook an unpaid internship in London earlier this year, was forced to cut his placement short due to the unaffordability of living expenses. “I had to leave my internship early because I couldn’t cover the cost of living in London,” Tobin said. “This has made me reconsider my career path and seek opportunities in sectors where I am compensated fairly. For organisations aiming to diversify their talent pool, it is crucial to ensure that all internships are paid.”

The call for action highlights an ongoing issue in the professional landscape, stressing the need The Social Mobility Foundation or regulatory measures to enforce fair compensation for internships. As the debate continues, the Social Mobility Foundation and other advocates urge the Government to take decisive steps to address this imbalance and promote a fairer job market for all.