Amicus the Union

Amicus the Union

April 26, 2007 19:01 ET

Labour Deputy Leadership frontrunner calls for action on remittances

News from Jon Cruddas MP

LONDON, UNITED KINGDOM--(CCNMatthews - April 26, 2007) -

Embargoed until 00.00 hrs on 27th April 2007

Labour party deputy leadership candidate Jon Cruddas has called for the government to do more to help immigrants living in Britain to send money to their families in developing countries, following his parliamentary questions tabled on the issue.
Writing on the new political website, TMP, set up for Black, Asian and minority ethnic people, Jon Cruddas MP for Dagenham in east London, and a candidate for Labour's deputy leadership, said of immigrants from developing countries:

"They often work long hours, are poorly paid and hold down several jobs at a time.

"Despite these hardships, migrant workers here from developing countries manage to send money - referred to as "remittances" - to their families in their countries of origin, which it is estimated totaled more than GBP 2.3 billion last year."

Commenting on remittances, Jon Cruddas MP, said:

"Remittances are spent mostly on basic subsistence needs such as clothing, education, food and health, so they help meet the Millennium Development Goals of reducing poverty and increasing access to education and health.

"The government has done a lot of work to increase competition and transparency in the money transfer market for remitters for which it deserves credit. But we must go further. We must look at other ways of ensuring remitters can make the most of the money they send to relatives in the least developed countries in the world."

Cruddas calls for the government to act before the next G8 summit and makes two policy proposals to help remittances go further to alleviate suffering in the world:

"The government should explore setting up a not for profit, money transfer agency through which remitters could send funds home. This would ensure individual remittances can be sent for minimal (or no) fees."

"More and more remitters from the same local communities in developing countries are collectively pooling together remittances through "home town associations. The government could set up a register of such associations and should consider giving registered associations tax relief on the funds they remit. "

Gibril Faal, Chair of the African Foundation for Development (AFFORD), welcomed the article by Jon Cruddas:

"Jon Cruddas is one of the first front line politicians to argue in favour of tax relief on remittances. Few other leading politicians have done so. This move is most welcome."

Murad Qureshi AM, member of the London Assembly, said:

" Jon Cruddas is right to highlight that its not your tax-dodging celeb or your grandstanding politician or even your "do-gooding" NGO that contributes the most to development assistance to the developing world but your migrant worker. "

"Remittances is the Cinderella of development assistance to the developing world and not only should we drive the costs down but also give it tax relief, to help the unofficial flows become official flows."


1.Jon Cruddas is Labour MP for Dagenham in east London. He has announced that he will be a candidate for Labour deputy leadership. For more information on his campaign visit

2.Jon Cruddas' Deputy Leadership bid has received the support of 100 Labour grassroots activists from every area of the country. They include councillors, local party secretaries and trade union officials. He was overwhelmingly endorsed by 53% of Compass members in March. He has also received the support of Amicus General Secretary Derek Simpson and T&G leader Tony Woodley.

3.The article, which will appear on 27 April 2007 on the political website TMP ( set up for left leaning Black, Asian and minority ethnic people, is attached.

Contact Information

  • TMP
    Chuka Umunna
    Amicus Press Office
    Catherine Bithell
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