HMRC Starts Crackdown on Firms That Employ Interns

The government has launched a crackdown on unpaid internships according to the Guardian, sending more than 550 warning letters to companies and setting up enforcement teams to tackle repeat offenders.

HM Revenue & Customs is expected to target sectors such as media, the performing arts and law and accountancy firms, which have a reputation for using unpaid interns.

About 70,000 internships are offered each year in the UK, according to the Sutton Trust social mobility charity. It estimates that of 10,000 graduates who are in internships six months after they leave university, a fifth are unpaid. It has calculated the cost of doing an unpaid internship as more than £1,000 a month in London and £827 in Manchester, putting valuable work experience beyond the reach of those from families on low and middle incomes.

Although minimum-wage legislation makes many unpaid internships illegal, the government recently admitted that there had been no prosecutions.