Economy: Remittances

Lord Faulkner of Worcester Excerpts

Thursday 4th February 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

On the noble Lord’s first point, I can give him that assurance. The cost of transactions for remittances in Q4 2020 stood at 6.48%, which is beyond the SDG target. We will use our presidency of the G7 and G20 in pursuit of that aim. He is right to raise the report, which I have looked at carefully, and the work that needs to be done in that respect. As we said in our response to the International Relations and Defence Committee’s report in September, we are committed to supporting innovative mechanisms that can leverage sustainable sources of finance.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

The noble Baroness, Lady Stuart of Edgbaston, does not appear to be on the call, so I call the noble Baroness, Lady Anelay of St Johns.

[Baroness Anelay of St Johns (Con) [V]]

My Lords, I welcome what the Minister has said so far. What opportunities have the Government identified specifically to support greater access to local secure remittances as a consequence of their work with the World Bank and the UK’s Financial Sector Deepening Africa programme?

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[Lord Ahmad of Wimbledon (Con)]

My Lords, on the noble Lord’s last point, we have had various discussions on the announcement made on the reduction in ODA. As I have said before from the Dispatch Box, we will look to return at the earliest opportunity to 0.7%—but the fact is that we will still be spending one of the highest sums of any G7 country, amounting to £10 billion, on our ODA commitments. Equally, on the subject that we are discussing today—remittances—we are working, and indeed leading the world, in innovative solutions to reduce the cost of transactions and increase the number of remittances. As I said in my original Answer, remittances far outweigh ODA in developing parts of the world. Our eight countries of priority reflect the very objectives of our ODA spend, which is helping the most vulnerable around the world.

[The Deputy Speaker (Lord Faulkner of Worcester) (Lab)]

My Lords, all supplementary questions have been asked, and we now move to the next Question.