LPC urges stricter enforcement of rules on unpaid internships

More must be done by HM Revenue & Customs (HMRC) to crack down on what the Low Pay Commission (LPC) has branded illegal unpaid internships.

The Commission has issued a report detailing its most recent research on the practice, and said that HMRC needs to step up its "effective enforcement" of these internships in order to prevent exploitation.

The chairman of the LPC, David Norgrove, said that much more needs to be done to protect young people in the labour market, as it continued to be a matter of great concern for them.

"We received evidence this year which indicated a number of employers were ignoring minimum wage rules with regard to internships and some other forms of work experience," Mr Norgrove. "We believe raising awareness of the minimum wage rules and more effective enforcement are the best ways to tackle this misuse."

The report said that awareness and enforcement campaigns should cover the rules applying to payment of the national minimum wage for those undertaking internships, all other forms of work experience and volunteering opportunities.

The LPC's research showed that a number of industry bodies had voiced specific concerns about the rise of unpaid internships, including the British Hospitality Association (BHA), the British Beer and Pub Association (BBPA) and Business In Sport and Leisure (BISL). They said that such internships put employers in "an invidious position", as they undermine the minimum wage.