31 July 2025 
Julia Ascott, Employment Taxes Specialist
At BUFDG HQ, we understand that unpaid internships are not something typically offered in the sector outside of student work placements, however, if you read further down, this call for evidence also includes volunteers. For this reason, AND that the government has included education institutions within their ‘would like to hear from’ list, BUFDG would like to respond. In order to do so and to fully represent our membership, we would be grateful if you could fill out this survey which reproduces the questions from the call for evidence (see below).
Call for Evidence on unpaid internships
The government states that it is “concerned that some workers who are entitled to minimum wages may be placed in rolls that have been incorrectly classified as being exempt from needing to pay individuals”, which is why it is also seeking information not just on unpaid/low paid internships, but also:
The are seeking views from various areas (specifically mentioned), including educational institutions and non-profit organisations/ charities.
Within the interns section, UK higher education institutions are mentioned, but thankfully it sets out the legal position of UK HE students on work placements as part of their course who can be paid less than NMW:
“The National Minimum Wage regulations set out that UK and international students at a higher or further education institution in the UK who are required to undertake a mandatory work experience placement of up to one year as part of their course are exempt from being required to be paid the National Minimum Wage. Students from further and higher institutions from outside of the UK are not included within this exemption. This means UK and international students are entitled to National Minimum Wage if the internship is part of their educational course based outside the UK.”
However, I would like you to read through the section on volunteers, reproduced below for ease, followed by the related questions from the government as it’s important for us to provide our scenarios so that they are properly considered. Once you’ve read through the below, please use this survey to answer the questions for your institution (anonymous), which we will use to complete our consultation response.
5.1 Summary
Volunteers do not qualify for the minimum wage because they are not workers. They do not have any employment contract or contract to perform work or provide services.
Typically, a volunteer:
Some organisations may reimburse volunteers for reasonable expenses, such as travel costs and meals. Such reimbursements are not considered payment, so they do not affect the volunteers’ status. However, if volunteers receive more money on their driving expenses than they have spent, they may need to pay tax on their driving expenses.
Volunteers often perform tasks that resemble paid employment. A volunteer might be classed as a worker if they receive payment, reward, or benefit in kind. This includes any promise of a contract or paid work in the future. As a worker they would be entitled to National Minimum Wage.
Volunteers do not have a contract of employment or form of contract to perform work, and do not enjoy the same legal protections as paid employees. They are under no obligation to volunteer, and they provide their time and effort freely. This means that organisations cannot compel volunteers to perform certain duties, and they can choose whether they perform the duties asked of them, as well as when and how they perform these. Although some organisations use volunteer agreements, which set out expectations of the nature of the duties a volunteer is expected to perform and the location and hours of volunteering, this is not compulsory and not legally enforceable. Volunteer agreements generally outline the following:
As long as these agreements are intended to clarify the reasonable expectations of the volunteer and the organisation and are clearly not intended to amount to a legally binding employment contract or a contract to personally perform work or services, they will not make the person a worker and entitled to be paid the minimum wage.
Imposing a requirement on a person to comply with a statutory obligation such as health and safety, or providing health and safety training, would not, on its own, result in the person being classed as a worker and entitled to the minimum wage. However, if a legally binding employment contract arises, the person would be entitled to the minimum wage unless a specific exemption applied.
The circumstances where workers are required to be paid at least the National Minimum Wage is clear. Volunteers do not qualify for the National Minimum Wage and we are unaware of specific issues relating to volunteers. Sometimes volunteers can be conflated with other, similar roles, such as internships but given the limited evidence in this area, the government is using this call for evidence to understand how organisations engage and deploy volunteers.
Questions on volunteers (all reproduced within the survey link above)
43.Does your organisation currently engage volunteers, or has it done so in the past? [Yes/ No/ Do not know/ Prefer not to say]
44.Which types of roles do volunteers typically perform within your organisation? (Select all that apply)
45.If your organisation engages volunteers, do they receive any compensation? [Yes/ No/ Do not know/ Prefer not to say]
46.Please select all forms of compensation volunteers receive (Select all that apply)
47.There is no single statutory definition of ‘volunteer' should this be introduced in legislation? [Yes / No / Do not know/ Prefer not to say/ Other – Please specify]
Impact of paying volunteers
48.Should reimbursing all volunteers’ expenses (including but not limited to travel, meals) be mandatory? [Yes / No / Do not know/ Prefer not to say/ Other – Please specify]
Volunteer protection and fairness
49.Should organisations be required to provide a clear, written description of volunteer roles and responsibilities? [Yes / No / Do not know/ Prefer not to say/ Other – Please specify]
50.Do you have any other comments or suggestions regarding volunteering? If yes, please state these below.
