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<p>The Government is committed to cracking down on worker exploitation in the labour
market. This includes the exploitative use of unpaid interns.</p><p> </p><p>We continue
to invest heavily in minimum wage enforcement, increasing the budget to £26.3 million
for 2018/19, up from £13 million in 2015/16. HM Revenue and Customs (HMRC) follow-up
every worker complaint it receives and takes enforcement action against employers
underpaying the National Minimum Wage (NMW).</p><p> </p><p>HMRC also conducts proactive,
targeted enforcement in sectors or areas where there is a higher risk of workers not
being paid the legal minimum wage. HMRC is prioritising employers of unpaid interns
as part of this work. For example, HMRC routinely contacts employers who advertise
unpaid internships, signposting them to NMW guidance to help ensure they are compliant.
HMRC has contacted over 1,000 employers in this way since last year.</p><p> </p><p>The
Government discusses NMW obligations with employers and worker groups frequently.
This includes the issue of exploitative unpaid internships. In line with the commitments
made in the Taylor review of modern working practices, the Government will hold a
roundtable with employers and leaders from sectors that commonly use interns, to increase
awareness of existing legislation. This is scheduled to take place before summer recess.</p><p>
</p><p>The Government also committed to updating public guidance for employers and
workers on the rules for paying interns. I can confirm that changes will be published
over the summer alongside other updates to NMW guidance.</p><p> </p><p>The Government
continually assesses the effectiveness of its approach to NMW enforcement, including
the approach taken with respect unpaid internships. We will continue to monitor the
use of unpaid internships through our regular stakeholder engagement and will publish
further details on progress made in enforcement of the NMW over the summer.</p>
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