Unpaid Work Experience (Prohibition) (No. 2) Bill

Ben Everitt Excerpts

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Alex Cunningham]

Maybe my Bill should limit the length to 20 days with one employer—it all amounts to the same thing—but the hon. Member is right: a young person could gain experience over a period of time. If he supports my Bill, perhaps we can amend it to take on exactly that point.

The only way that we will crack down on this practice is by limiting the amount of time that someone can do unpaid work experience for one organisation.

Of course, there are already rules around the definition of a worker, but the Sutton Trust carried out some excellent research that found those rules are not as clear to organisations and those carrying out their work experience placements as we would hope. For example, it found that half of young graduates are unaware that unpaid internships are illegal—yes, they are already illegal—in most circumstances. This is a significant problem as the current system relies on young people to self-report any unpaid internships that they suspect are illegally not paying the minimum wage. That puts those young people in an incredibly difficult position.

[Ben Everitt (Milton Keynes North) (Con)]

Will the hon. Gentleman give way?

[Alex Cunningham]

No, we are running out of time.

Information received through a parliamentary question in June shows that since 2007, Her Majesty’s Revenue and Customs investigations have led to just 15 successful prosecutions of employers for national minimum wage-related offences, but there have been no prosecutions relating to internship cases despite more than 150 complaints received by HMRC from workers undertaking unpaid internships. And that is before we consider the large number of people who do not know they are illegal and are working for months on end under the illusion of it being work experience.

The Bill clarifies and tightens current legislation and ensures that those on unpaid work experience placements are not being exploited. One of the best ways to do that is to limit the length of time of a placement in law. A six-month unpaid internship will cost a single person living in London a minimum of £6,300, and in Manchester £5,300, just to fund their own placement. Not only are they not being paid, but their living expenses can put them into serious debt before they even get their first proper job. That is not a system that we should be advocating. One we could advocate is Mr Speaker’s own intern scheme, which ensures that the young person taken on is paid the London minimum wage, or the local minimum wage. We should encourage organisations to replicate Mr Speaker’s scheme. I would like to make it clear that the Bill does not apply to placements where a university course requires it. These are often unique circumstances in which the student is funded through other means, so it is not affected by my Bill.

Moving towards a conclusion, we in this place must first look to ourselves and recognise that Parliament needs to take a lead. It is a significant statistic that 31% of Westminster staffers have worked for an MP without being paid. How are we supposed to set the example when many MPs in this House think that having people work for us for months on end with no pay is even the slightest bit satisfactory? Out there, thousands of employers are offering such placements under the guise of work experience and most of them do not even know they are breaking the law.

The Sutton Trust found that up to 50% of employers thought most unpaid internships were perfectly legal. Many others were not so sure. We need to take the ambiguity out of this. We must make sure that the rules are not open to misinterpretation. We need to be firm and make it clear that long-term unpaid internships are not permitted. We need to ensure that those who can afford to work for free are not given a step on the ladder ahead of their less affluent peers. We need to make sure that young people are not being exploited by organisations that should be paying them a wage. We need to make sure that social mobility is a reality in this country. Passing the Bill will help in all those areas. It is simple, it is straightforward, and it provides the clarity needed by both young people and employers.

I would like to end by reminding the Government about their prior commitments. The response of the Government to the Taylor review of modern working practices was that they would introduce new guidance and increase targeted enforcement activity to help to stamp out illegal and exploitative unpaid internships, but they have not. When he served as Mayor of London, the Prime Minister said that he wanted to tackle unpaid internships. The Prime Minister also said on 25 July last year that he backed this exact Bill in the name of the right hon. Member for Elmet and Rothwell. Now, however, it seems that instead of backing it, he has backed out.

Government Members have a choice today: back the Bill and work to thrash out the minor details, if necessary, in Committee. Take a stand today and acknowledge that we have not done enough to eradicate exploitative working practices and that the Bill makes the move to right the wrongs. All colleagues here should be aware and think of the teenager in their constituency who works hard but, because of a low socioeconomic background, cannot work for free. Help that teenager get on the ladder for a change. Many young people from poorer backgrounds face challenges that many of us in this House could not even imagine. Let us take down one more barrier in their way. Let us take one step further to improving access to the workplace. Let us end exploitative, unpaid work experience or internships once and for all. I commend the Bill to the House.