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A quarter of businesses generally pay their interns nothing, or less than the national minimum wage, according to new research by Intern Aware and YouGov. The survey of 682 senior business decision makers also found that 82% of the businesses using unpaid interns say that interns perform tasks that are useful to their business.
"Our research shows that most businesses that use unpaid interns are readily admitting that these people are performing valuable tasks," says Chris Hares, campaigns manager at Intern Aware.
"This suggests that they meet the legal criteria of 'workers' and shows that the national minimum wage is not being enforced properly. Many of these businesses are potentially breaking the law."
Upaid interns have taken legal action against previous employers in high profile cases, and won, students have protested and HMRC has launched a "crackdown" against non-payment of interns, but how far have things really come?
"I don't think things are changing at all," says an anonymous journalism student. "There are still a great number of unpaid placements being advertised in fashion and media and these seem to be the only route into the industry.
"People are scared to speak up as they rely on their internship references for future jobs."
Veronica Wells, a second-year English literature and philosophy student at the University of York who has done two unpaid internships and is now on a paid placement, says: "Unpaid interns are seen as disposable, or a way for companies to keep costs down."
Often unpaid interns are sold the opportunity on the prospect of future work – but on other occasions it is clear that the internship is a route to nowhere.
Carla Rose, an English literature graduate, did an unpaid internship at a well-known travel magazine in London. She says: "Each month they got a new unpaid intern and I was quick to realise that by having an intern every month they didn't need to employ someone to fill that gap."
According to the new research, paid internships are more likely to lead to jobs than unpaid ones, with 48% of employers who pay their interns hiring their interns in future compared to 32% of those who do not pay.
James Nicholson, a Cambridge University computer sciences graduate, did a paid internship at an internet startup that led to a full-time job. "Being paid meant I could afford to take the job – I had money for rent and food.
"The company even extended me an advance to help with the deposit on the room. I was an undergraduate when I did the placement but when I graduated they offered me a job."
It's hard for students to push for payment, particularly in industries like fashion, journalism and PR where unpaid placements are still common, and often openly advertised.
"I would have found it a challenge to speak up to a manager during an internship and ask for payment," says Kitty, a recent graduate of film and media with photography, who has done two unpaid internships.
"You're immediately put in a position of vulnerability – this generous firm has invited you into their business because you need to learn. What isn't always made clear is that many students already have great qualities and the ability to make genuine beneficial business contributions."
Campaigners are clear that they need to keep talking about unpaid internships. Research shows that the practice is still common, and is often illegal. Long unpaid internships slam the door of opportunity in the face of hardworking students and graduates who can't afford to work for free.
The good news is that although many employers aren't paying their interns, many (three-quarters) are.
"Paid internships are a better option for business," says Hares. "Businesses find internships to be a more useful way of recruiting people when they are paid than when they are not. This is because those businesses who pay their interns can draw on a wider talent pool, and see greater commitment and investment placed in these opportunities."
Nicholson's internship story has come full circle: he now works in a tech company that regularly employs paid interns. "You need to recruit competitively if you want the absolute best. If you're not paying interns then you're significantly reducing your pool of good people, and that's not good business."
Have you ever done an unpaid internship? Share your stories.
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