Many grads relying on ‘Bank of Mum and Dad’
The legal industry has been identified as one of the worst offenders for offering unpaid or underpaid internships to graduates, according to new research.
A YouGov poll, cited in a new report by social mobility charity The Sutton Trust, found that nearly half (46%) of legal employers offer unpaid or underpaid (i.e. not paid the minimum wage) internships. Only the real estate (64%) and construction (54%) industries had higher proportions.
Researchers examining internships across industries found that more now pay at least the National Minimum Wage, increasing from 27% in 2018 to 37%. However, the number of internships paying below this rates (£8.60 for over 18s) has also risen, from 9% to 23%. Worryingly, around one in five internships offer no financial compensation at all.
The report further found that more than a third of graduates (35%) had completed an unpaid or underpaid internship, up from 27% in 2018. Graduates from working-class backgrounds are significantly less likely to undertake an internship than their middle-class counterparts, with the gap widening from 12 percentage points in 2018 to 20 percentage points today.
Forty percent of those completing unpaid work experience said they relied on the ‘Bank of Mum and Dad’ to support them, up from 26% in 2018.
Nick Harrison, chief executive of the Sutton Trust, said:
“Internships are an increasingly critical route into the best jobs, and it’s shocking that in this day and age, many employers still pay interns below the minimum wage, or worse, nothing at all. They should be ashamed. The government has pledged to ban unpaid internships, which is absolutely the right thing to do. Clearly not all young people can get support from the bank of mum and dad so banning this outdated practice will help to level the playing field for these valuable opportunities. It’s a no brainer and should be implemented without delay.”
While unpaid or low-paid internships are common in less lucrative areas of the legal industry, City law firms make a concerted effort to offer generous support packages to their vacation scheme students. These can include weekly salaries of up to £750, free meals, accommodation assistance, and even a cash allowance for a new suit!
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