Zarah ChoudharyThe Sutton Trust’s latest research, conducted by Erica Holt-White and Carl Cullinane, has revealed that 35% of graduates have completed an unpaid or underpaid internship, with one in five receiving no financial compensation.
Despite being a crucial gateway to professional careers, internships remain inaccessible to many due to financial barriers, disproportionately impacting those from lower socio-economic backgrounds.
The research indicated a troubling reliance on financial support from families, with 40% of unpaid interns relying on the “Bank of Mum and Dad,” up from 26% in 2018.
This dependency highlighted how internships are increasingly unaffordable for individuals without family resources, perpetuating inequalities in workplace access.
Graduates from working-class backgrounds are 20% points less likely to undertake internships compared to their middle-class peers, a gap that has widened significantly since 2018.
The Sutton Trust’s findings underscored the role of social capital in accessing opportunities, as only 11% of internships are openly advertised, with many positions secured through informal networks.
While there has been some progress, with 37% of internships now paying at least the National Minimum Wage (up from 27% in 2018), there has also been a rise in underpaid positions, which now account for 23% of internships.
This trend raised legal and ethical concerns, as many of these positions likely violate existing minimum wage legislation.
The lack of enforcement and the legal grey area surrounding internships allows employers to misclassify roles as volunteering, avoiding the obligation to pay interns fairly.
The Sutton Trust’s report called for urgent reform to address these issues.
Key recommendations included banning unpaid internships longer than four weeks, improving the enforcement of minimum wage laws, and ensuring that all internship opportunities are publicly advertised and merit-based.
The report emphasised that unpaid internships act as a significant barrier to social mobility, excluding talented young people who lack financial resources or connections.
Employers and policymakers must address these inequities to ensure that internships are accessible to all and not just those who can afford to work for free.
By paying interns at least the National Minimum Wage, offering financial support such as covering travel costs, and improving transparency in recruitment, organisations can create a more inclusive system that benefits both young people and the broader economy.
As the report highlighted opening up opportunities to a wider pool of talent is ultimately beneficial for employers, young people, and society as a whole.
