New research published today by The Sutton Trust has confirmed what all unpaid interns knew already – that internships without a wage cost more than many school leavers and graduates can afford.
The Sutton Trust, a UK-based organization committed to improving social mobility in education, today released the report entitled ‘Internship or Indenture?’, questioning the legitimacy of allowing young people to work for free in order to gain valuable work experience.
The report estimates that there are at least 21,000 unpaid interns working in the UK at any one time. While this number accounts for all ages (16 -75), the latest data shows that among this number, almost a third of interning university graduates are not being paid. According to an Ipsos Mori poll, 70% of people aged 16-75 in England agreed that unpaid internships are unfair as they favor those from wealthy families – the only people “likely to be able to work for a significant period without pay”.
Unpaid interns in London must find £900 a month to live
For university graduates, acquiring the money to take on unpaid internships is even harder thanks to unavoidable, and increasing, student loan debt. For those living within the UK capital the problem is exaggerated further, due to the particularly high living costs. The report calculates that (single) unpaid interns living in London can easily spend upwards of UK£900 a month (US$1,400) just to cover rent, bills and food (with the exclusion of transport costs, which may be refunded by the internship provider even for unpaid internships). For a six-month period, the Sutton Trust estimates an expenditure of at least UK£5,556 (US$8,800) in order to be able to work for free.
Outside of London, the price of unpaid internships is lower but still significant. In Manchester, for instance, living costs covering accommodation, bills and food (but excluding transport costs) are expected to total UK£788 (US$1,250) a month, equating to £4,728 (US$7,500) over a six-month period.
Entry-level jobs are more obtainable for past interns
The Sutton Trust also highlights another report conducted by the UK government’s Social Mobility and Child Poverty Commission, which found that at least half of all entry-level jobs at leading law firms and City investment banks are likely to be filled by graduates who have completed work experience with the company. The Commission also found that on the popular Graduate Talent Pool website, as much as 63% of creative internships, 56% of media-related internships and 42% of financial and professional services internships are unpaid positions.
The Sutton Trust backs minimum wage for unpaid interns
With no promises of a paid job upon finishing an internship, interning without a wage is a risk that only the nation’s wealthiest can afford to take. The Sutton Trust concludes that this has “significant consequences for social mobility”. In order to combat this, it recommends that interns who work for longer than a month in the UK should be provided with at least minimum wage (UK£6.50/US$10 per hour). In addition, the report also recommends that all internship positions are advertised publicly, rather than informally, and that all recruitment processes for interns should be fair, clear, and based on merit.
