The introduction of a training wage, set at £2.50 per hour, is being called for by the Chartered Institute of Personnel and Development (CIPD) as thousands of graduates begin internships across the country.
Research conducted by the CIPD show that 37% of interns currently work for free, propping up a controversial system in which social mobility and career advancement is severely restricted for candidates from poorer backgrounds, who are unable to rely on financial support from their families (see Martin Bright’s report on p6). The CIPD policy paper ‘Internships: To Pay or Not To Pay’ proposes that all interns are paid a guaranteed minimum wage to reflect the contribution that an intern makes to an organisation. It is recommended that the training wage – which is the current minimum rate of pay for apprentices – be introduced to cover all industries and occupations.
Tom Richmond, Skills Advisor at the CIPD, says, “The continued existence of a major loophole in the national minimum wage legislation has created a lot of confusion over whether interns should be paid. The training wage would provide young people with valuable experience and help tackle exploitation in the workplace.” Richmond believes there are two-way benefits to the proposed policy, namely that “organisations would still be able to recruit young talent at a reasonable rate during this difficult economic period and beyond”.
Published: 05-07-2010