Minority communities in UK send savings back home: Survey

London, July 27 (UNI) More than one third of ethnic minority households, who responded to a UK-wide survey, sent an average 870 pounds back home to their families living in some of the poorest parts of Africa and Asia last year, according to a new report published today by the Department for International Development.

In the last 12 months, the average household money remittances by the Indians was 1,001 pounds, which is less than the Pakistani household average of 1103 pounds followed by 1,050 pounds by Bangladeshi households. But population-wise 14 per cent of Indian households compared to 10 per cent Pakistani sent money home.

Chinese households averaged 882 pounds, belying the claim that they send the maximum money back home.

According to the official IMF statistics, 230 billion dollars worth of remittances were sent to developing countries worldwide.

The survey found that 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 pounds and 70 per cent of them were between 25-44 years of age.

Around 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, and 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 1,000 pounds back home in 2005, but African households were not far behind with 910 pounds. Those communities sending below the overall average of 870 pounds included Black Caribbean and Chinese. But almost a quarter of those questioned did complain that charges seemed too high.

The research revealed that many poor countries receive more in money sent back by relatives than they do from overseas companies investing in the local economy.

The survey also indicates that 15 per cent of people exclusively used informal methods, such as sending money with friends or relatives travelling back home.

The research is the most comprehensive look at the private money transfer habits of Britain's Asian, African, Caribbean and Chinese communities that totalled to 28,000.

''Sending money home to families in developing countries plays a vital role in helping to tackle poverty, but until now there was little detailed information on what contribution ethnic minorities in the UK made,'' Minister for International Development Gareth Thomas said.

''This new survey fills this gap, and improving understanding will help banks, community groups and financial service providers offer more options to people wishing to send money home to relatives,'' he added.

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 now looking at reducing barriers and costs to remittance flows, improving data and reducing barriers for firms to enter the remittances market.

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