Social Mobility Employer Index: Major employers are still not paying interns

• In the seventh year of the Social Mobility Employer Index: 143 businesses and public sector organisations entered, employing over 1 million people
• PwC ranked top employer for improving social mobility
• Three employers did not pay their interns
• Social mobility charity urges action from Government to clamp down on this illegal practice

The Government is being urged to take stronger action on enforcing the illegal practice of unpaid internships as new research finds employers are continuing to use the practice despite the cost of living crisis. 

Three employers, who entered the Social Mobility Employer Index are offering unpaid internships – a surprising finding as the Index measures how employers promote social mobility. It raises fears the practice is more widespread across the UK.

National data on unpaid internships is scarce but research in 2018 found that there were around 100,000 interns working in Britain of whom 58,000 were unpaid. The Foundation believes that all employers should pay interns the National Living Wage.

Alongside the Index, the Foundation polled 1,000 young people from lower socioeconomic backgrounds and found that over half (56%) of young people said that making sure internships are paid would allow them to access opportunities away from home, so making the professional jobs market fairer.

Rt. Hon Alan Milburn, Chair, Social Mobility Foundation, said:

“Britain has a problem. Compared with other developed nations we have high levels of child poverty and low levels of social mobility. The perma-crisis of the last 15 years - the global financial crisis, the pandemic, the cost-of-living crisis - has made things worse, not better and it is the younger generations who are paying the price.  

“The Index shows more employers like PwC, this year’s top-ranked company, recognising that talent is everywhere, but opportunity is not. Their efforts are commendable and are making a difference. But it is shocking to learn some employers are still not paying interns a fair day’s wage for a fair day’s work. The Government must take action to clamp down on this practice to ensure opportunities are open to all young people.”

Sarah Atkinson, Chief Executive, Social Mobility Foundation, said:

“The employers represented in this year’s Index recognise that the workplace is as important as the classroom for improving social mobility. They are doubling down and are rightly continuing to prioritise social mobility as an investment in the talent of the future.”  

We urge those sectors who are least represented such as, Technology, the Creative Industries and Engineering to start taking action. The SMF stands ready to support employers of all sizes in their social mobility journey.”  

Kevin Ellis, Senior Partner at PwC UK, said:

“Social mobility, or lack of social mobility, is not only a societal issue but an issue for business and the economy. If opportunity narrows, labour markets shrink, and workforces become one-dimensional. We’ve seen first-hand the benefits of improving the diversity of our workforce - and are committed to doing more. It’s positive to see so many employers enter the index as we can all learn from each other.”

Ciaron Tobin, aged 20, from Nottingham who took part in an unpaid internship in March this year said:

“I had to quit my internship two weeks early as I was unable to afford the cost of living in London as I am from Nottingham. This meant I couldn’t gain the experience I needed in the field I am interested in working in, if think tanks want to become more diversified they need to make sure they pay all their interns correctly. For me, this has meant I am now considering working in a different sector, that is able to pay me as I now know that I couldn’t take part in another unpaid internship.”

The organisation Ciaron did his internship with did not enter the Social Mobility Employer Index 2023 and has no relation with the Social Mobility Foundation.

Notes to editors

For more information on the Index, the top 75 employers or interview requests for Rt. Hon Alan Milburn, Sarah Atkinson, CEO of the Social Mobility Foundation, Kevin Ellis and Ciaron Tobin contact eva@harpswood.com

Copies of The Social Mobility Foundation’s Employer Index Report are available on request.

Data on internships in Britain in 2018 is from a YouGov surveycommissioned by The Sutton Trust.

Data on young people’s opinions on unpaid internships are from research carried out for the Social Mobility Foundation in July 2023 by Platypus Research.

One thousand young people from higher socioeconomic backgrounds and 1,000 people from lower socio-economic backgrounds were asked “What could employers do to make sure you can access work experience/internship in areas outside of where you currently live?”.

47% of those from higher socioeconomic backgrounds and 56% from lower socio-economic backgrounds said “Make sure internship opportunities are paid.”

About the Social Mobility Foundation

The Social Mobility Foundation (SMF) is a national charity that aims to make practical improvements in social mobility for young people from low-income backgrounds through its Aspiring Professionals Programme, its Social Mobility Employer Index, and its advocacy and campaigning arm, the Department for Opportunities.  

About the Social Mobility Employer Index 

The Social Mobility Employer Index was launched in 2017 and has become the leading authority on employer-led social mobility. It assesses and ranks UK employers on the actions they take to ensure they are open to talent from all social backgrounds.  

The Social Mobility Employer Index evaluates employers across seven areas: their work with young people, routes into the employer, the attraction of staff, recruitment and selection, data collection, progression of staff and experienced hires, and advocacy. Employers can also complete an employee survey. The data and insights from this process are published in an annual Employer Index Report which features a ranking of the 75 top-performing employers on social mobility that year.  

Submissions for the 2024 Index will open early next year.