Internships have become a 2: November 2014 prominent feature of the UK landscape. For many professional : £2 a day subsidy for food and a there is now an expectation Examples of unpaid 2-zone travel card that graduates will go through an (or even several Intern for MP internships) before starting a full-time Allocation and Merchandising intern Period: 6 months for high street clothing store paid role. This has led to growing Duties: administration, basic correspon- concern about the extent to which dence, diary management, fundraising, Period: 9 months internships are paid, and the impact campaigning and related tasks Duties: Collating and circulating important of unpaid internships on social Salary: Reasonable travel expenses weekly analysis, allocating stock to stores mobility. and reviewing performance, analysing Working on shopping and style desk and controlling replenishment, identify- What is an internship? for popular magazine ing opportunities and risks and helping to maximise sales, communicating with There is no concrete definition of Period: 3 months buyers and stores regarding intake and what constitutes an internship. Duties: Writing content for Shopping and stock issues However, a recent report by the Style section, tweeting, blogging, editorial Salary: Expenses paid for zones 1 and 2 Institute for Public Policy Research research, PR liaison (IPPR) points out three ways in which they differ from other forms of work experience: a professional in the most underestimate given that graduate competitive sectors, including interns may be more likely to be paid 1. Length: Internships tend fashion, journalism, politics, law, than non-graduates. to last months rather than finance, and the charity sector. weeks, with some lasting up Because these areas are so Information on different sectors to a year competitive, employers are often able is also patchy. However, in his to offer internships as completely 2012 report on fair access to the 2. Time commitment: Interns unpaid positions. , Alan Milburn noted that are often expected to keep 63% of cultural and creative, 56% of the same full-time hours as Paid and unpaid internships media-related, and 42% of financial other members of staff and professional services internships Due to a paucity of good data, no advertised on the Graduate Talent 3. Work expectations: firm figures have yet been published Pool website were unpaid (p.22). Internships are not on the prevalence of unpaid Only a fraction of all available courses. In most cases internships. The Government has internship positions are likely to interns will be expected to do estimated that there are up to 70,000 be posted to this specific board; real work for the organisation interns in the UK (at any one time), however these figures do suggest – work that would otherwise with up to 15,000 of these being the scale of the issue in particularly require a paid member of unpaid. The latter figure is based on competitive industries. staff. A recent YouGov survey a survey by the Chartered Institute of of businesses found that (CIPD), in With a growing proportion of the the majority of those using which 21% of businesses employing population holding at least an unpaid interns reported that interns reported that interns were undergraduate degree, relevant the interns did work that was not paid. New calculations we have work experience is an increasingly useful for the business carried out using data on recent important requirement for accessing university graduates show that graduate jobs. The 2012 Milburn This shows that internships have 31% of graduate interns in the UK report noted that not only was much more in common with early report working for no pay.1 Applying general work experience seen as career jobs than they do with training this proportion to the government’s vital by employers, but that access courses or with other forms of work 70,000 figure would place the total to graduate jobs was often reliant experience. number of unpaid interns in the UK on specific experience with a given closer 22,000. However, this is also company. For example, Milburn Internships commonly represent a likely to be a significant cites figures from the Association first step on the ladder towards of Graduate Recruiters estimating 1 that: “at least half of entry-level vacancies at City investment banks Figure 1. Estimated minimum outgoings required and leading law firms are likely to be filled by graduates who have to live in London for six months (see Footnote 2 already completed work experience for data sources) with the employer” (p.21).

These issues make unpaid £863 Rent internships a serious and pressing problem for social mobility. The Bills requirement to live for long periods £525 Food without an income makes this £2,784 vital route to the top professions Transport available, not solely on the basis of £710 Other talent or hard work, but on the basis of ability to pay. Total cost = £6,081 £1,199 In this Research Brief, we put a Excl. transport = £5,556 number on the cost of taking up an unpaid internship, and report the results of new polling of public unfortunately good quality data on opinion on this practice. Public attitudes toward unpaid this topic simply do not exist. internships How much does an unpaid As an alternative, we can compare In June of 2014, we commissioned a internship cost? the costs of an unpaid internship survey to investigate public attitudes Taking on an unpaid internship to estimates of individual cash towards unpaid internships. The means having to meet living costs savings. An independent living intern survey was conducted by Ipsos for many months without an income. would require at least £800-1,000 MORI through its Online iOmnibus Here we examine the minimum per month. Data on cash savings and included 1,728 adults aged 16- 2 necessary outgoings of a single in the UK are scant; however the 75 in England. person living in London, where the most recent estimates from the ING Respondents were initially asked majority of the professions served Direct Consumer Savings Monitor what they thought internships of by unpaid internships are based. (from the last quarter of 2012) put different lengths should pay. The These figures can be considered an median cash savings at £1,678. This results are presented in Figure 2. estimate of the true ‘cost’ of taking an means that the vast majority of UK These figures show that, as the unpaid internship. They give us an residents are unlikely to be able to length of the internships increases, idea of who might be able to afford to fund an independent living internship respondents are more likely to think take up these opportunities. for themselves or for their children through savings. that they should pay at least the Figure 1 estimates the minimum minimum (currently £6.50 outgoings for an unpaid intern Some commentators have suggested per hour). For internships of up to living in London for a six month that interns without other resources a month – close to what might be internship. The total cost is £6,081, should support themselves with considered ‘work experience’ – half with the largest expenditures being part-time work. Figures from the of all respondents reported that on rent and essential bills. A survey 2013 ONS Annual Survey of Hours internships should pay less than the of employers commissioned by and Earnings show the median pay (though only 13% IPPR suggests that most employers for part-time bar workers (a typical thought they should pay nothing at do reimburse interns for travel part-time service ) as £6.50 per all). For internships of four months expenses. However, after excluding hour. Median weekly hours for this or longer, increasing majorities of transport costs, total outgoings group are 14.7, giving a total monthly respondents thought that interns remain at £5,556, or £926 per month. income of £414.05 – far below any should be paid at least the minimum reasonable estimate of living costs. wage. London is one of the most expensive cities in the world, so for comparison One way of avoiding many (though Figure 3 compares responses to this we also examined figures for not all) living costs during an question between respondents at Manchester. Cheaper rental costs in internship is to live with parents. different income levels, specifically Manchester reduced the total cost However, this further restricts for internships of 4-6 months. This for a six month unpaid internship to opportunities to young people with shows similar levels of support for £5,078 (£4,728 excluding transport families in the relevant area who paying interns the minimum wage costs). also have sufficient additional living across all income groups, with top space and the financial resources earners slightly more likely to be These costs clearly restrict unpaid to support them. In a survey supportive. There is a 10 percentage internship opportunities to those with commissioned by InternAware, point gap in support between top sufficient savings, or with access only 12% of respondents thought and bottom earners; however this to family funding. Ideally, we would that they, or a young person in their appears to be due to an increased have information on the social family, could afford to complete an proportion of those on the lowest backgrounds of unpaid interns; but unpaid internship. incomes responding that they didn’t 2 know, rather than to increased Figure 2. Percentage of respondents agreeing that internships should be opposition to paying the minimum paid at various levels, by internship length (N=1,728) wage. 100%

18% 18% 18% 18% Other interesting results from the 90% 18% Don’t know 80% 3% 1% 2% 2% 7% 3% 3% survey show that responses were 13% 4% largely consistent across genders, 70% 17% 10% 18% Internships should not pay any ages, and geographical regions. 60% money 28% 19% There were some differences 50% Internships should only have to cover between different age groups, 40% 9% 73% expenses (e.g. for travel, lunch) 67% depending on internship length, with 30% 55% those over 45 largely more likely to Internships should pay some salary, 20% 43% support paying the minimum wage 33% but below the National Minimum 10% Wage than those from younger age groups. 0% Internships should pay the National However, these differences were too Up to 1 month 1-3 months 4-6 months 7-12 months More than 12 Minimum Wage or above small to be significant. Particularly months notable is that there were no strong Internship length differences by status, with those who were not employed a way to financially support Conclusion and being equally as likely to support themselves” paying interns the minimum wage as recommendations were those with full-time jobs. Figure 4 shows that, overall, consistent majorities of respondents In the UK, elite and influential We also surveyed beliefs about (70%) agreed that unpaid internships professions such as politics, the fairness of unpaid internships. were unfair, due both to the inherent journalism, law, and finance have Respondents were asked to report unfairness of working without pay, been consistently dominated by the extent to which they agreed or and to the advantage accruing to those from the most privileged disagreed (on a five point scale) with those from wealthy backgrounds. backgrounds. A recent report by the the following four statements: The figures also show that these UK government Social Mobility and attitudes were largely consistent Child Poverty Commission, building 1. “Unpaid internships are unfair across income groups (there was on previous work by The Sutton because everybody working also very little variation across other Trust, found that 71% of senior should be paid at least some socio-demographic groups). judges, 55% of the most senior salary” civil servants, 43% of newspaper Overall, 24% of respondents agreed columnists, and 33% of MPs were 2. “Unpaid internships are that unpaid internships are fair privately educated – compared with unfair because only people as they provide valuable working only 7% of the general population. from wealthy families are experience, whereas 15% thought likely to be able to work for a they were fair because people There is some evidence that the significant period without pay” wanting a particular career would situation may have worsened over find a way to support themselves. time for a number of professions. 3. “Unpaid internships are fair Contrary to the “unfair” statements, A study by Dr Lindsey Macmillan of because they provide young responses differed by income group, the backgrounds of professionals people with valuable work with those in the top from the 1958 and 1970 birth cohorts experience” significantly more likely than others showed that, for example, lawyers in their early 30s in 1990 came from 4. “Unpaid internships are fair to agree that unpaid internships were fair as they provide work experience. families that were 40% richer than as people who really want the average family, whereas lawyers a particular career will find of the same age in 2004 came from families 63% richer than average. For other professions differences Figure 3. Percentage of respondents agreeing that an internship of were even starker. Journalists 4-6 months should be paid at various levels, by income level in 1990 came from families only (N=1,7284) 6% richer than average, whereas Don’t know 100% journalists in 2004 were from 10% 16% 14% 90% 25% 1% families 42% richer than average. 1% 2% 8% 80% 6% 5% Internships should not pay any The sample sizes within specific 2% 70% 8% 20% money professions in this study were very 21% 22% 60% 15% small, so the findings should be Internships should only have to 50% interpreted with caution. However, cover expenses (e.g. for travel, 40% lunch) they point to a potentially growing 61% problem. 30% 56% 57% Internships should pay some 51% 20% salary, but below the National Minimum Wage As we have shown, living costs 10% Internships should pay the mean that unpaid internships will be 0% National Minimum Wage or above Up to £19,999 £20,000-£34,999 £35,000 - £54,999 £55,000+ largely restricted to those from the Annual gross household income wealthiest families. Given their likely

3 Figure 4. Percentage of respondents agreeing with each statement, by income level (N=1,7284) 80%

70%

60%

33% £55k+ strongly agree 37% 37% 41% 29% 50% 38% 32% 41% 39% £55k+ tend to agree £35k-54,999 strongly agree 42% £35k-54,999 tend to agree 40% £20k-34,999 strongly agree £20k-34,999 tend to agree Up to £19,999 strongly agree 30% 9% Up to £19,999 tend to agree Overall strongly agree 5% 5% 5% 20% 4% Overall tend to agree 37% 35% 37% 5% 33% 32% 34% 32% 29% 3% 2% 28% 26% 3% 22% 3% 10% 19% 20% 19% 16% 18% 13% 14% 12% 10%

0% Unfair because everybody working Unfair because only wealthy able to Fair because provide valuable work Fair as people who really want should be paid some salary work without pay experience particular career will support themselves increasing importance to accessing graduates six months after graduation. 3. The survey was conducted from the the most competitive professions, Of all graduates responding that they 13th-17th of June 2014. The survey data were currently employed as interns, were weighted by age, gender, region, unpaid internships can therefore only 30.6% reported that they were working social grade, working status, and main serve to reduce chances for social unpaid. shopper to the known profile of the mobility for those from more modest English population aged 16-75. backgrounds. 2. Accommodation: Median rental cost for a room in a shared property in 4. Up to £19,999 base: 511; £20,000- Lewisham (London’s cheapest borough) £34,999 base: 418; £35,000-£54,999 Our polling clearly shows that the or Manchester from June 2014 Valuation base: 348; £55,000+ base: 191 public see this as a problem, with Agency Office private rental market large majorities both recognising the tables. Bills: Average spend of single inherent unfairness of the practice, person household on water and energy from ONS 2013 Family Spending report, and agreeing that interns on long plus Band A council tax for 2014-15 in placements should be paid. Unlike Lewisham or Manchester (net of single many other issues, these beliefs cut person discount), plus current cheapest across demographic and economic BT broadband and line rental package (£25.99 per month), plus TV licence, plus groups. Orange Sim Only mobile phone contract (£8 per month). Food: Average spend of Footnotes: single person household on food, from 2013 Family Spending report. Transport: 1. Author’s calculations based on London weekly bus pass/Manchester data from the HESA Destinations of Arriva weekly saver transport ticket (as Leavers survey 2012/13 (Copyright of June 2014). Other: Average spend Higher Statistics Agency of single person household on clothing, Limited 2014 – HESA cannot accept health, and miscellaneous goods and responsibility for any inferences or services (e.g. personal care products, conclusions derived from the data by cleaning supplies), from 2013 Family third parties). This survey collects data Spending report on almost all UK higher education

Recommendations

• All internships longer than one month should be paid at least the National Minimum of £6.50 per hour and preferably the National of £7.85 (or London Living Wage – £9.15 – in London) - Previous polling by InternAware has shown that 65% of businesses support a four week limit on unpaid internships • Internship positions should be advertised publicly, rather than being filled informally • processes should be fair, transparent and based on merit

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