Unpaid Internships

Martin Caton Excerpts

Tuesday 18th June 2013 Westminster Hall

[Mary Macleod]

The right hon. Lady is generous with her time. I apologise for not being here for the beginning of the debate, but I was at another meeting. I congratulate her on the debate, which is important.

Do we need a clearer definition, to distinguish between work experience and internships? We are all very positive about the value of work experience, but sometimes the argument becomes all about the wealthy versus the poor, and that is not the issue. I started with nothing. My parents gave me no money; but I still went out and built my own connections, and asked about things, and tried to get work experience in that way. When I go into schools in my constituency I speak about building networks and connections. I say, “If you are struggling to get work experience, e-mail me, and I will try to help you find it.” Such things are important to build on.

I completely agree with the right hon. Lady about the long-term—

[Martin Caton (in the Chair)]

Order. That is a very long intervention.

[Hazel Blears]

I am grateful to the hon. Lady for her intervention and also for taking one of our Speaker’s scheme interns, who has flourished. I know that she has given that young person a great deal of personal development time.

The hon. Lady makes a good point: it is up to everyone to make the most of their connections. The difficulty is that some people come with ready-made connections, and some find things more of a struggle. That is relevant not just to professions, but to anyone getting their next job. When we set up the future jobs fund there was a statistic that I found amazing, which was that seven out of 10 people get their next job from someone they know; only one or two get it from the jobcentre. Whether someone wants to be a plasterer or a joiner, it is about having wider connections and knowing some people. We are trying to give people the incentive and ability to make connections. It is far less likely that someone from a poorer background will know a lawyer or doctor or member of a similar profession. Therefore, it is much more difficult for such people to make those connections.

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[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

It is a pleasure to serve under your chairmanship, Mr Caton. The right hon. Member for Salford and Eccles (Hazel Blears) talked about redemption. Being a bad Catholic, one can deal with that, I hope. I join everybody else in congratulating her on her success and drive with the Speaker’s scheme and the wider issue of internships. I declare an interest: when I went to university in the 1970s, I do not think that there were internships. Because there were so few graduates, we just went into the market. I did not know anything about internships.

The figures that the right hon. Lady and others quoted seem to show that internships work. An article the other week said that university graduates on an internship scheme or some other kind of work are three times more likely to get a job, and that 61% of graduates in internships tend to get a job in that company or profession. Whatever the system is—we have imported the word from the United States—it appears to work. We must then ask what various hon. Members have asked: how do people get into the internship game?

I will declare another interest. I was a teacher for 37 years, including in social priority schools. In other schools, the drive was to give people confidence and push the talented ones to get somewhere. The hon. Member for Hackney South and Shoreditch (Meg Hillier) hinted at my experience of teaching in Leytonstone, where students could see the towers of the City of London, but, because of their background and circumstances, never dreamed that they could enter it. As she said, if there were an internship system, their families could never have afforded to say, “You can take six months,” or however long, while keeping them at home.

I am now the Member of Parliament for Lancaster and Fleetwood. Many of the students I see at Lancaster university could never dream of taking an internship in London—the great capital, the centre of most of the great professions and businesses—because, as everybody has commented, accommodation costs alone would wipe out their money, let alone the costs of feeding oneself and so on. It is just not possible. Arriving here as a new Member of Parliament, I saw how many people were in the system and knowledgeable about it, because their families were knowledgeable about it and could support them through it, and I began to ask questions.

The penny dropped when I saw an article in the London Evening Standard in 2010 about an auction of internships in the creative industry, including in top fashion companies—at a charity event, to be fair—for £10,000 or £15,000. I thought, “Out of the people I represent and the people I used to teach, who could ever afford to get into this game, even at the smallest level?” There was something wrong. In Parliament, which is supposed to set an example, although I know it sometimes fails to do so, the same system operated.

In the same week that I read that article, I listened, as all politicians do, to the “Today” programme. Suddenly, there was Baroness Morris of Yardley—Estelle Morris as was—chatting away with the right hon. Member for Salford and Eccles about the issue. Then I wandered into Parliament, and who was walking down the corridor but the right hon. Lady? The last time she and I had spoken was during a heated debate on television, when I was the Conservative opposing her and we had done the usual political thing. The fact is that across parties, we shared a common view that something was wrong.

People have rightly talked about equity—that is the passion behind the issue—but, as other hon. Members have said, it is also about the talent that we are losing through the system. This is a competitive world, a global race and all the rest of it. That talent is unable even to take a first step. Part of that first step—as everybody has said, it is also about money—is knowing that the system exists. We need to get that right. Being a Conservative, I do not want too much regulation, but we need to make the terms understood and to advertise them across the system.

To return to the students and pupils whom I taught in the east end of London, most of them would not know about internships unless teachers introduced the idea, and most teachers came from my generation and did not know what internships were. How were the students ever to learn that that system operates in most top businesses and professions as an add-on to graduation and a way of getting in? They lacked the knowledge even to start. It is a double issue.

I accept the restrictions. We must consider the definitions of internships and work experience. I am pleased that Her Majesty’s Revenue and Customs is now working on that, but we must also sort out how we can advertise in schools and universities, so that everybody with talent can see that they need to use that system to maximise their talents and contributions. There is a knowledge and advertising agenda. I also liked the right hon. Lady’s compliments to the Social Mobility Foundation, which has done a lot of work on the issue and is doing much with the Government agenda to get the system right.

How do we advertise the subject of internships? The right hon. Lady is proposing that Parliament sets an example, which would itself be a big advertisement: there is a thing called internships and, whatever a person’s background, they have a chance of getting in on this system. That is really important. As she said, paid internships are spreading through the House; I do not know the numbers or whether this figure is correct, but I saw the other day that 40% of internships are still not paid, which is enormous, and that unpaid system is still going on. If we have internships, we have to get right how they are termed in the House, even though that is a small-scale thing.

I do my own scheme, as well as supporting the Speaker’s parliamentary placement scheme. Every year, I keep some money aside to give someone a chance and to pay someone from Lancaster university to do a month in Parliament. I pay the minimum wage and all the rest of it. I have a rolling programme, so the interns appear to the Independent Parliamentary Standards Authority as paid employees. Anyone who looks at my numbers thinks I am a bad manager, because I have a huge turnover of people, in particular in summer and autumn, but they are paid internships. We need to get the House regulations right for what Members of Parliament are trying to do, so that no one can misconstrue things. I might be a bad manager, I do not know—ask the staff who work for me—but at the moment it looks as if I have a big turnover in staff. We need to get small things such as that right.

It is important for the Minister to get in, but I shall emphasise my main points: first, the equity issue; secondly, the loss of talent throughout the country because people are not entering internships; and, thirdly, when we begin to get this right and finally set an example in Parliament, we need to advertise what is going on throughout business and the professions. Internships are not some odd thing, but are part and parcel of business and professional life. Every student in school needs to know that internships are part of the system.

[Martin Caton (in the Chair)]

I am about to call Ms Creasy. I would be grateful if you could resume your seat by 10.40 am, so that we have adequate time for the wind-ups.

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[Jo Swinson]

I quite agree—

[Martin Caton (in the Chair)]

Order. We need to move on to the next debate.