Economy: Remittances

Lord Alton of Liverpool Excerpts

Thursday 4th February 2021 Lords Chamber

Asked by

[Lord Alton of Liverpool]

To ask Her Majesty’s Government what assessment they have made of the impact of remittances (1) on the United Kingdom economy, and (2) from the United Kingdom to the economies of developing countries.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, remittances are a significant source of funds for developing economies and have a positive impact on the UK economy. Money service businesses trade around £1.8 trillion daily through the UK. The World Bank estimates that in 2019 UK remittances totalled around £23 billion, £8 billion more than the UK overseas assistance budget. Remittance payments typically flow to households and increase income and resilience to economic shocks. Let me assure noble Lords that the UK is committed to working with the G7 and G20 to ensure that remittances are sent as cheaply, accessibly and securely as possible.

[Lord Alton of Liverpool (CB) [V]]

My Lords, with the total value of remittances to low and middle-income African countries three times higher than official development aid—which is now being cut—and with a dramatic Covid-related reduction in remittances in 2020, will the Minister look at the gains that could be made by remittance matching and cutting the 6.5% cost in fees when sending remittances from the UK to meet the UN goal of 3%? Will he also say what the Government are doing to follow up the recommendations in chapter 5 of the International Relations and Defence Committee’s report on sub-Saharan Africa relating to remittances?