Minimum Wage

Lord Lea of Crondall Excerpts

Tuesday 30th November 2010 Lords Chamber

Asked By

[Lord Lea of Crondall]

To ask Her Majesty’s Government what assessment they have made of the growth in the number of unpaid interns, particularly in the London area; and how this relates to the minimum wage.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Wilcox)]

My Lords, the Low Pay Commission undertakes research and provides advice to the Government on issues related to the national minimum wage. The commission assessed developments in internships in its 2010 report and reported evidence that a growing number of people were undertaking unpaid internships. It did not report on the London area separately and it did not report any effect of the minimum wage on the number of unpaid internships.

[Lord Lea of Crondall]

I thank the Minister for her reply, but it does not really address the anxieties of hundreds of thousands of young people for whom unpaid internship is their only option, despite their debts. First, will she commit HMG to producing some data, whether by random sample or otherwise, so that illegal practices can be identified and exposed? Otherwise her department will confirm its reputation as having no serious interest in enforcing the national minimum wage. Secondly, guidance on what is possible at the moment under the national minimum wage is really about what employers do not need to do, so will she look at the guidance and bring a Statement to the House before Christmas as to how it needs to be strengthened?

[Baroness Wilcox]

The Government of course recognise concerns about the increase in unpaid internships and the risk of exploitation and we are working to improve guidance on the status of interns and to raise awareness. We will ensure that enforcement of the national minimum wage continues to be effective and that resources are focused on where they will have the maximum impact. We want to make as many internships and work experience opportunities as possible available to our talented young people, from all backgrounds, because these opportunities may lead them into work in the future. Of course we wish to make sure that the guidance is clear and of course we wish to avoid people being abused—children particularly—in this way. At the same time, we want to be careful that we leave these opportunities for youngsters to gain good experience and possibly lead themselves into work in the future.