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Laurie Penny: Internship auctions and a lost generation

To criticism that a lot of people could be priced out, the response is, “That’s life.”

On the bus this morning, a young father was distributing pocket money to his three small children. The eldest was kicking the back of my chair in bone-jarringly rhythmic anticipation of being taken to town for a day's shopping, but when he received his small handout, the kicking stopped.

"I'm not going to spend my £3, Dad," announced the boy, "I'm going to save it, and then I’m going to save all my pocket money, and then I can go to university and get a good job." This may, of course, have been the sort of cunning ploy to wheedle extra cash out of a parent that anyone who was ever a smart-arse seven-year-old will recognise.

It speaks volumes about the state of social equality, though, that while this primary school pupil from inner London was contemplating forfeiting an entire childhood's worth of treats to afford a chance at higher education and fulfilling work, wealthy Oxford graduates were taking up prestigious internships that they had purchased at a lavish charity auction held at the university last month.

Students who attended the opulent Oxford Red Dress Couture Ball, tickets for which were priced at up to £300 (though most cost £40), were able to bid thousands of pounds for coveted professional placements with law firms and fashion designers.

A mini-pupillage with the barrister Neil Kitchener QC was under the hammer, as were designer gowns, hotel breaks and other goodies available only to the extremely well-off. Sam Frieman, co-organiser of the auction, told the Cherwell that "you can only come to the auction if you have paid for a ticket. In response to the criticism that a lot of people could be priced out, I would say, 'That's life.' "

Internships like these are now prerequisites for many jobs, and most interns work extremely hard to obtain and finance work placements. "As someone from a low-income, East Midlands background, this auction is another reminder that I'm at a disadvantage because I can't afford an internship,” said a recent Oxford graduate, Kate Gresswell, 21.

Relative inequality within the Oxbridge system is hardly the pressing issue of our times, but if even the cleverest Oxford graduates are finding that money matters more than merit something has gone terribly, terribly wrong with our employment equations.

The internship system is already expensive enough to exclude all but the richest and most fortunate young people from popular jobs.

I could pretend, for example, that it's my winning smile and genius that have enabled me to find work as a journalist -- but a year's unpaid interning, during which I survived on a small inheritance from a dead relative, had just as much to do with it.

Today, any graduate or school-leaver without the means to support themselves in London while working for free can forget about a career in journalism, politics, the arts, finance, the legal profession or any of a number of other sectors whose business models are now based around a lower tier of unpaid labour.

After the relative levelling of university, class reasserts itself with whiplash force as graduates from low-income backgrounds find the doors of opportunity slammed in their face.

Last week, the Chartered Institute of Personnel and Development called for employers to be obliged legally to pay interns a minimum wage of £2.50 an hour, but such a step is unlikely to be taken by the coalition, which has already made it breathtakingly clear that preventing young people from falling through the cracks in our society is not likely to be a priority any time soon.

With 70 applicants for every new vacancy, with almost a million young people unemployed and with millions more languishing in insecure, temporary and poorly paid work, the job market is now open only to those who can afford to buy their way in.

The Telegraph reports that across the country hundreds of placements are being sold or brokered, often at similar auctions for the wealthy, where the fact that proceeds go to charity gives the new nobility yet another reason to be smug about giving themselves the life chances that previous generations enjoyed for free.

For the few of us who are wealthy enough to finance ourselves through work placements, only a firm push is needed to force open the doors of opportunity. Without a co-ordinated effort to reverse this regressive trend, the years to come will be littered with wasted potential and filled with disappointment for young people with nothing to bring to the table but talent, creativity and ambition.

(*Disclosure: the New Statesman employs unpaid interns.)

Laurie Penny is a contributing editor to the New Statesman. She is the author of five books, most recently Unspeakable Things.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.