British communities quiet contributions save lives.
Hundreds of millions of pounds a year are sent from the UK to loved ones abroad to help put food on the table, help with medical costs and send children to school.
This support is happening on a huge scale. 1 in 9 people around the world are supported by money that is sent to them by family or friends living in other countries. And in the UK, diaspora communities sent an estimated $10.1 billion in remittance in 2022. This is more than the entire UK foreign aid budget. New data from the World Bank shows that in 2023, remittances surpassed foreign direct investment (FDI) and official development assistance (ODA).
The money sent through remittance is a lifeline - but the cost to remit is too high.
Costs for transferring money is on average 6.4% but can be as high as 24%. During a cost-of-living crisis in the UK, this fee is an additional barrier for families who want to support their loved ones overseas. This limits the flow of remittances from the UK - meaning that less money reaches those who need it the most.
In 2015, the UN introduced a Sustainable Development Goal (SDG) to reduce remittance costs to less than 3% by 2030. But there has been little progress made since then. If transfer fees were dropped to 3%, Save the Children UK estimates that $45.7 million could be saved in money transfers from the UK to just 4 countries including Somalia, Ethiopia, Kenya and Yemen.
Remitting money home faces multiple barriers.
The cost to remit is so high due to various systematic barriers from domestic regulations and hidden fees when using certain remittance companies. Accessibility issues are accelerated by conflicts and humanitarian crisis.
These obstacles are a daily challenge for many diaspora communities in the UK but even in the face of these obstacles, remittance flows increase yearly as the need increases from loved ones being faced with crisis after crisis.
