Students and graduates exploited during unpaid internships would be protected under recommendations for a training wage.

Research by the Chartered Institute of Personal Development has revealed nearly two in five internships are unpaid.

While they are a valuable entry to employment for many, the CIPD claims critics have stated they are becoming the preserve of young people from rich families who can afford to work for free. Interns are also open to exploitation as there is no legislation forcing employers to offer a minimum wage.

The CIPD has recommended that employers be forced to pay interns a minimum of £2.50 an hour to ensure all interns get a fair return for their work and those less well off don't have to face going unpaid just to complete an internship.

Tom Richmond, skills adviser at the CIPD, said: "The existence of this loophole in the minimum wage legislation has created a lot of confusion about the issue of whether interns should be paid.

"We believe that the introduction of this training wage would reflect the contribution that interns make, which is likely to be less than that of a fully trained member of staff, while addressing concerns over reductions in the number of internship opportunities that may result from all interns being paid the minimum wage."

The CIPD proposes that advertising any position as an internship should legally oblige the employer concerned to pay at least the training wage for the whole term of the placement.

The suggested rate of £2.50 is the same as a newly announced government rate for apprentices.

Richmond added that the low wage floor would ensure employers can "recruit young talent at a reasonable rate during this difficult economic period".