Calls to bring in ‘training wage’

Economic experts have called for firms to pay a training wage of £2.50 an hour for internships which last longer than three months.

The proposal is part of plans by the Chartered Institute of Personnel and Development (CIPD) to help boost the fragile British economy.

The CIPD's "Blueprint for Growth" also aims to bring in laws extending workers' rights to flexible hours, and also bringing in mediation as a means of resolving industrial tribunals.

John Philpott, chief economic adviser to the CIPD, said: "The Government wants to foster a strong private sector-led economic recovery but we have yet to see a coherent strategy for economic growth to sit alongside the Chancellor's very clear-cut approach to reducing the fiscal deficit.

"The Coalition needs to show greater urgency in implementing measures to help boost the long-run supply side capacity of the UK economy, which must include efforts to boost productivity by improving the way in which businesses manage the people they employ.

"The Chancellor should also demonstrate a willingness to ensure there is sufficient demand in the economy to reduce the considerable unused capacity available at present, and if necessary revise the speed and scale of the planned fiscal squeeze. There needs to be a step-change in the UK's leadership and people management skills if we are to close productivity gaps with our international competitors."

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