Unpaid Internships

John Hemming Excerpts

Tuesday 18th June 2013 Westminster Hall

[Hazel Blears]

My hon. Friend makes an extremely good point, and she has been a champion for the social mobility agenda for many years. The principle of working for free is wrong, irrespective of the circumstances, in London or outside London. I will just qualify that by saying that short-term work experience placements are perfectly suitable. However, long-term unpaid internships, wherever the intern lives, are wrong.

[John Hemming (Birmingham, Yardley) (LD)]

I congratulate the right hon. Lady on raising all these issues. I also thank Mr Speaker for allocating the time for this debate. Does the right hon. Lady share my concerns about social mobility, because this is about social mobility? Also, does she think that there are perhaps lessons to be learned from the history of the Bar? Initially, to get a pupillage, a person had to pay 200 guineas, but in 1975 that system was abolished and bursaries began to be introduced. Now there is a requirement to ensure that a pupil—who has to work as a pupil to become a barrister—is paid. That is perhaps something that other professions could learn from.

[Hazel Blears]

I am grateful to the hon. Gentleman for that intervention. I am also grateful to him for supporting Mr Speaker’s parliamentary placement scheme, to which the hon. Gentleman has shown a real commitment. He makes an interesting point about the law. I think that most of us would feel that the law might be one of those professions that had not made as much social progress as others. However, it is not just among barristers that there has been progress: some of the big law firms in London are now very conscious of the need to bring in a wider pool of talent to ensure that they are getting the very best people. As for barristers’ chambers, I will cite an example in a moment of something that I do not feel is right. Nevertheless, they have made significant progress.

[John Hemming]

I thank the right hon. Lady for giving way to me a second time. Does she agree that this issue is about getting a first step on the ladder? A person cannot get to the second step unless they get on the first step.

[Hazel Blears]

I absolutely agree. That is why this is about social mobility, because if someone cannot get their foot in the door as they do not have money or connections, or do not know the right people, it will be virtually impossible for them to use their talent and realise their potential. That is why I feel quite angry and passionate about this issue, and it is why I am so pleased that many Members share that passion and try to make a difference, as the hon. Gentleman clearly does.

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[Hazel Blears]

I am grateful to the hon. Gentleman for raising the issue, and for his advocacy for change, particularly in the City. He has put his finger on an issue that many people raise with me: if we regulate, do we drive the issue underground and exclude more people? There comes a point when a moral decision has to be made. Are we comfortable asking people—often young people—to work for nothing? It is worse than Victorian. Some 100 years ago, people used to pay to be apprenticed to a master, and used to pay for their articles and pupilage, as the hon. Member for Birmingham, Yardley (John Hemming) said.

There is a point at which, as political leaders, we say what is right and wrong and then get people to change their behaviour. We should have some regulation, although I would not do a lot of regulation in this field. I suggested that we outlaw the advertising of unpaid internships, which in themselves are unlawful. At the moment, people can advertise things that are unlawful, which is farcical for legislators. We have to make a moral and political decision, and then get behaviour change, led by good companies and firms, and good advocates, who will go with us. There are 100 companies in the Deputy Prime Minister’s social mobility compact; that is a massive swathe of people who can be our advocates and ambassadors.

On the idea of driving internships underground, at the moment 95% of people are excluded anyway. If companies use word of mouth, they will not be able to bring in those from other areas of the country, or those who do not have any money. Sometimes, we just have to stand up and be counted.

[John Hemming]

Given that not paying people is unlawful under the national minimum wage regulations, and given that under the Serious Crime Act 2007 encouraging a crime is unlawful, I wonder whether advertising an unlawful thing and encouraging people to do it is already a crime. Perhaps the right hon. Lady’s efforts in this area could simply enforce the law.

[Hazel Blears]

I am grateful to the hon. Gentleman. I do not know if he has a legal background; does he?

[John Hemming]

I set up a computer business many years ago. I am a computer programmer.

[Hazel Blears]

I was going to say that I love clever lawyers’ suggestions; nevertheless, I love clever suggestions. If people advertising were complicit in an unlawful activity, perhaps we could look at aiding and abetting and being accessories; all those things are now going through my mind. I do not think that we are necessarily in that territory. I am grateful to Her Majesty’s Revenue and Customs for taking this issue more seriously, at the instigation of the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for East Dunbartonshire (Jo Swinson), who has pressed HMRC to fast-track enforcement; I will come on to that later in my speech. More can be done, but the hon. Member for Birmingham, Yardley, makes an intriguing suggestion, and I am pleased that we have it on the record in Hansard that it might be worth considering.

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[Hazel Blears]

I agree entirely. I would say to employers that part of that flexibility and support is pay. If a student is doing a part-time job to get through university and an internship in the evening, that is not acceptable—that is not a life worth living. There must be some payment of the intern, who is working for the employer, in their company.

[John Hemming]

If I might disagree with my hon. Friend the Member for North Swindon (Justin Tomlinson), I am still a business owner, and I employ more than 250 people. I believe it is better to select people on their abilities, rather than on their parents’ wealth. Does the right hon. Member for Salford and Eccles (Hazel Blears) agree?

[Hazel Blears]

I apologise to the hon. Gentleman; could he repeat his question? I was just reading a note from the Clerk.

[John Hemming]

The point I was making is that I am still an employer, and I employ a large number of people on their abilities, not their parents’ wealth.

[Hazel Blears]

I am delighted to hear that. I am also delighted to hear the debate we are having. It is important that people give their personal views when we have a debate. From that, we get behaviour change. I have been campaigning on this issue for the past two years, and I have seen people’s opinions change. Some people started out by telling me, “We think these things are acceptable” or “We think the jobs will go underground”, or by raising other problems, but we have achieved significant progress. I am therefore delighted that we are having this debate. Incidentally, the hon. Gentleman has a significant record as a successful business person, so an employer’s business need not suffer if they pay their interns. In fact, it could prosper because they are doing the right thing: they get a great reputation, their brand is improved and they make significant progress.