Western Union’s survey reveals the impact of rising living costs in the UK on remittance patterns for migrants.
As many migrants have started to cut back on the amount of remittances they send, Western Union reports that the cost of living challenges in the UK may be affecting persons outside of England, Scotland, Wales, and Northern Ireland.
About 40% of immigrants in the UK think their friends or family would be living in poverty if they didn’t regularly send remittances home. However, because of the rising cost of living, many migrants are forced to cut back on their remittance payments.
The Value of Remittance, a Western Union survey that examines the real-world effects of remittance payments, showed that 52% of migrants think their friends and family depend on the money they send to pay for medical care. In addition, about 46% of respondents think that family members would not be able to pursue further education, and about 45% claimed that their relatives or acquaintances back home would not be able to pay their rent or mortgage without remittances.
“This research highlights the crucial role that remittance payments play in supporting families and communities around the world,” said Bob Rupczynski, chief marketing officer of Western Union.
“The money that migrants send serves as a crucial lifeline for their relatives and friends back home, and at Western Union we are aware of the enormous impact that these payments have, providing access to necessities like food and shelter as well as opportunities for better lives and access to healthcare and education.
“We are honored to support these crucial relationships and the global aspirations of individuals. Making finance available to everyone is our overarching goal, so that, no matter where we are, we can all enjoy financial prosperity.
Remittances are impacted by the cost of living
Remittances account for 22% of the average migrant’s annual income. But how is this money being used when sizable sums are being sent to relatives in other nations?
According to a study by Western Union, 61% of money sent home is used to pay for the healthcare of the recipients’ families, followed by the cost of groceries, lodging, and tuition for their children.
It was discovered that 92% of migrants had sent money to family members back home in the previous year, and 55% of migrants said that being able to send money to family members back home was a major motivator for moving to the UK.
According to the report, many migrants are struggling to support their families and friends back home despite a crisis in the worldwide cost of living. Due to the increased cost of living, 53% of migrants had to take on more work or start a new employment to make ends meet.
A total of 55% of people have had to cut back on their remittances as a result of growing living expenses. 37 percent of respondents said they were worried about losing their work within the next year and the effect this would have on their families back home.