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@lemonade
It looks bad, they don't even give a length for the internship do they? And it's full-time? So it's potentially forever, and they dangle the idea of a paid job in front of you. I was actually told at the beginning of mine that they definitely didn't want to give the impression that it might lead to a paid role, it was just a voluntary thing, part-time for three months. So at least I knew where I stood.
Also I don't think there is any political will to clamp down on unpaid internships, despite a few politicians talking about it recently. I happen to know a couple of people doing unpaid internships for MPs, so if the parties haven't even forced their own MPs to stop it, they won't be prosecuting people any time soon. :(
There's a lot of information here:
http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_198089
and here:
http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201
about internships and the minimum wage, and yeah, I can't see how that internship you linked to meets any of the criteria for not having to pay minimum wage.