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More
than a third of ethnic minority households, who responded
to a UK-wide survey (PDF),
sent an average £870 back home to their families living
in some of the poorest parts of Africa and Asia
last year, according to a new report published by the Department
for International Development (DFID).
The research is the most comprehensive look at the private
money transfer habits of Britain’s Asian, African, Caribbean
and Chinese communities.
This
survey is expected to improve ourunderstanding and help banks,
community groups and financial service providers offer more
options to people wishing to send money home.
Key
Findings
-
About 38 per cent of ethnic minority households who responded
to the survey sent an average of £870 back home last
year, the equivalent of an overseas holiday
- Of
the 50 plus developing countries receiving money from the
UK, the five largest recipients were Nigeria, India, Pakistan,
Jamaica and Ghana
- The
average income of the senders was £22,000 and 70 per
cent were between 25-44 years old
- In
almost 50 per cent of cases people were sending money to
their parents, another 25 per cent to other close relatives
like cousins and 15 per cent were sending money to spouses
and children
-
31 per cent of senders said the money would be used to buy
food, 21 per cent said it would help with medical
bills and 17 per cent reported the funds would help
pay for schooling
-
80 per cent said the money would make a real difference
to the lives of their relatives back home
- A
typical South Asian family sent an average of over £1000
back home in 2005 but African households were not far behind
with £910
- Those
communities sending below the £870 overall average
included Black Caribbean and Chinese. The reasons for the
differences are likely to be different family structures,
migration and employment patterns
- The
most important factor for people when deciding how to send
money home was whether it would arrive safely
- A
quarter of those questioned did complain that charges seemed
too high
- Many
poor countries receive more in money sent back by relatives
than they do from overseas companies investing in the local
economy. For instance, Ghana receives around 10-15 per cent
of its national income from remittances sent from around
the world, compared with around 3 per cent from foreign
investment
- 15
per cent of people exclusively used informal methods, such
as sending money with friends or relatives travelling back
home
- According
to reported research by the World Bank remittances
have helped cut the share of poor people in Uganda by 11
per cent and by five per cent in Ghana.
The
Department for International Development helped set up the
UK Remittances Task Force which includes members from
the British Bankers’ Association, Barclay’s Bank,
the Post Office, MoneyGram International, VISA Europe and
ICICI Bank. The task force is looking at reducing barriers
and costs to remittance flows, improving data and reducing
barriers for firms to enter the remittances market. It will
present its findings in a report to the government in early
2008.
For information on the services offered by money transfer
providers in the UK see http://www.sendmoneyhome.org
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