Universities should help undergraduate students on unpaid schemes by funding internships, a Government-commissioned report has suggested.
In a move to increase the number of opportunities for work experience, Sir Tim Wilson, the author of the review of university-business collaboration and former vice-chancellor of the University of Hertfordshire, said all undergraduates should complete a 10-12 week internship in a summer vacation. The review made 54 recommendations in total, including a number on how to encourage more so-called "sandwich" degrees which involve some form of work.
The report also suggested universities should only charge students on a placement year £1,000 rather than the permitted maximum of £4,500, and interest charges on student loans should be suspended. Companies hosting students for a year should be given a tax credit or grant, recommended the report.
Where internships are unpaid, universities should use funds they receive from the Office for Fair Access, which encourages students from poorer backgrounds to go to university, to support eligible youngsters rather than condone a policy that could "inhibit social mobility".
The report also suggested employers should also look again at the way they screen candidates for interview. A large number of firms use computer algorithms that limit recruitment to a particular set of universities [and] a 2:1 standard". This approach could have negative consequences for diversity.
Ministers were told there was strong evidence that a placement year improved students' employability, while lack of work experience was a "key barrier" in securing employment.
However, the proportion of students taking up placements has declined, from 9.5% of all full-time undergraduates in 2003 to just over 7% in 2010.
Moreover, the number of work placements had fallen in recent years and only a small number of universities now offered sandwich courses, including some which were previously polytechnics or technology colleges.
The business secretary, Vince Cable, said: "The best universities around the world are building deeper links with business. The government welcomes much of what Sir Tim says and will carefully consider his recommendations in detail."
