Recruiting Young People: Labours New Laws

The Labour party is proposing reforms aimed at reshaping how young people enter the job market. Internships and apprenticeships are central to these efforts, and Labour’s new policies on these programs are designed to tackle the current challenges, making these opportunities more inclusive, fair, and accessible for young people.  

The Current Landscape

For many young people, internships and apprenticeships are often seen as vital stepping stones into employment, providing invaluable work experience, skills, and networking opportunities. However, these pathways have been plagued by issues of exploitation, unfair treatment, and lack of accessibility.  

 A study by the Sutton Trust finding that 39% of internships in the UK are unpaid. Competitive industries such as media, politics and fashion are offering no financial compensation for the work provided, which severely limits opportunities for young people from lower socioeconomic backgrounds. The financial burden of unpaid internships could be costing young people up to £6,300 over a six-month period in cities such as London (The Institute for Public Policy Research). Many are unable to afford to work without pay for extended periods, creating an environment where only the privileged can access these career launching opportunities.  

Apprenticeship schemes are more regulated, however over recent years they have also come under scrutiny for low wages and inconsistent quality of training across industries. A report by the education and skills think tanks EDSK found that thousands are apprentices have quit due to the poor quality of the training. Apprenticeships are exempt from the National Minimum Wage and in 2010 a separate Apprentice Rate was brought in to help standardise the scheme, initially this rate was set at £2.50 per hour, in recent years the Low Pay Commissioners have recommended an increase to this rate which now stands at £6.40 per hour. It’s not just apprentices facing issues with the current format with many employers struggling with funding issues and engagement to hire apprentices due to bureaucratic hurdles.  

Labour’s new laws seek to address these concerns head-on by introducing a fairer framework for both internships and apprenticeships.  

The New Proposals 

Labour’s new policies on internships and apprenticeships are set to bring about sweeping changes aimed at improving working conditions, pay and accessibility for young workers. Key aspects of the proposed legislation include:
 

• Banning Unpaid Internships: One of the flagship proposals is a complete ban on unpaid internships. This move would level the playing field, ensuring that no young person is excluded from an opportunity due to financial constraints. By mandating that all internships must be paid at least the National Minimum Wage, Labour aims to make internships more equitable and accessible to all, regardless of background. This does not mean that all internships will be paid as those that are part of an educational or vocational training programme will be exempt, allowing for students to gain work experience as part of their formal education without a financial burden on employers.  

• Strengthening Apprenticeship Standards: Labour plans to introduce stricter regulations to ensure that all apprenticeship provide high-quality training and career development opportunities. These new standards will include oversight on pay, training content, and the progression opportunities available to apprentices, ensuring that young workers are not just cheap labour but are equipped with skills that make them competitive in the job market.  

• Addressing Skill Gaps: They believe in the importance of tailoring training programs to meet the practical needs of the workforce and to do so they plan to revamp the levy so that training is accessible particularly in sectors experiencing a skills shortage.  

• Flexible Growth: The proposed reform aims to give businesses greater control over how they spend their levy funding to make sure that it is helping to boost productivity and growth. As well as allowing employers to allocate up to half their levy funding towards more broad training and development beyond the apprenticeship.  

The Impact on Recruitment 

For businesses, Labour’s new legislation on internships and apprenticeships will require a shift in recruitment practices. Employers will need to rethink how they attract, hire, and retain young talent under this new framework. Here are a few ways recruitment strategies will be impacted: 

• Fair Compensation: Paying interns and apprentices a fair wage will not only be mandatory but also become a key component of an organisation’s employer brand. Companies that advertise fair wages and high-quality training will become more attractive to young workers who are increasingly prioritising fair treatment and opportunities for personal and professional development.  

          You may be interested in our blog: Is Salary Transparency Key to a Gen Z friendly Employer Brand 

• Diversity and Inclusion: With focus on inclusivity, companies will need to ensure that their recruitment pipelines reach diverse groups of young people. Businesses that adapt their recruitment practices to target candidates from a variety of backgrounds will benefit from a wider talent pool and a workforce that better reflects their customer base.  

• Scrutiny on Training Quality: Employers will have to ensure that their apprenticeship programs that provide genuine career progression, rather than just relying on apprentices to perform entry-level tasks. Recruitment strategies will need to emphasise the long-term benefits of these opportunities, including the potential for apprentices to move into permanent higher-level roles within the company.  

• Legal Compliance and Penalties: Companies will also need to navigate the legal landscape carefully, as non-compliance with Labour’s new laws could result in penalties. Recruitment teams will need to work closely with HR and legal departments to ensure that all internships and apprenticeships meet the necessary legal requirements, from wage standards to worker protections.  

These reforms promise to create a more equitable and inclusive system that allows young people from all backgrounds to access high-quality work experience and training. For businesses, this means adapting recruitment strategies to meet new standards of fairness and quality, which could benefit both employers and young workers alike. By investing in the development of young talent, businesses can build stronger, more diverse, and more competitive workforces for the future.