Pay all interns, says IoD

The Sutton Trust warned that unpaid internships were increasingly becoming the first step into the competitive careers mar- ket.

Natalie Sykes, regional director of the IoD in Yorkshire, said: “It is wrong that internships have become a route to a job and are generally not remunerated. Paying for internships creates a good work ethic by allowing students to experience being rewarded and valued for their contribution to our businesses.”

But the Confederation of British Industry (CBI) said banning unpaid internships would reduce the number of opportunities.

Katja Hall, deputy director-general at CBI, said: “All the evidence shows internships boost young people’s chances of getting into permanent employment. Businesses should be encouraged to offer them.”

But she emphasised the need to differentiate between paid work and work experience.

“The law is clear. Someone doing a job should be paid, but it’s important to distinguish between that and informal workplace experience or work shadowing,” she said.

Ms Sykes added that unpaid internships were no different to apprentices not being paid during training.

She said: “Insisting on payment and having an open and fair recruitment process puts everyone on a level playing field.”