Information for Refugees and Migrants

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UK Currency

The currency in the UK is the pound sterling (£) £1 = 100 pence (100p). 

Most money is issued by the Bank of England but you may be given banknotes issued by the Bank of Scotland/Bank of Clyde and the Isle of Man. These are legal tender in the UK which means that shops and banks must accept them. 

The coins in circulation include 1 pence (1p), 2p, 5p, 10p, 20p, 50p, £1 and £2. Banknotes include £5, £10, £20, £50. You can change coins into banknotes or banknotes into coins at any bank or Post Office. 

It is not normal to round prices up or down in the UK : if the price label on a product says £9.99, then you should get 1p change from a £10 banknote. If the price label says £10.02, you will have to pay that amount.

Benefits

The Directgov website has a very extensive section outlining the various kinds of benefits available and how to qualify for them1.

Banks

Opening a Bank Account

There are many banks and building societies in the UK which, have information on the services they offer. You can find out more by going into a bank or building society or by checking their internet websites. If you are asked to sign anything, be clear what you are agreeing to. You do not have to make your choice there and then, you can go away and think about it and compare the information from other banks and building societies. Once you have decided which services you want from a bank or building society make an appointment to see one of their personal advisers. They will tell you to bring information to prove your identity.

Asylum Seekers

Banks and building societies make careful checks on the identities of people asking to open accounts. Asylum seekers may find it difficult to open accounts if the bank or building society asks to see documentation that asylum seekers do not have. Banks and building societies may also want customers to prove that they have lived in the UK for at least 1 year.

 

Some banks including the HSBC and the Co-operative Bank have been helpful in the past and have allowed asylum-seekers to open an account using their ARC card and a letter from the Home Office as identification.

When visiting any bank or building society to open an account or to request other services always take as much documentation as possible to prove your identity, for example:

• ARC card / SAL letter 
• a letter from your doctor or solicitor confirming your identity and address 
• your tenancy agreement 
• TV licence documents 
• Provisional driving licence 
• Passport / travel documents 
• Utility bills / Council Tax bills 
• Home Office letters

Refugees

Once you have been given leave to remain in the UK , you will need to open a bank account that you can have benefits paid into. Refugees who can show a proof of address with a current bill for gas, electricity, water or telephone and another document, such as a rent book, should be able to open an account in most banks.

Types of Bank Account

Cash / basic account 

• gives a cash card for use at a cash (ATM) machine 
• allows wages or benefits to be paid directly into the account

Current account 

• gives a debit card for use at a cash machine and to make payment in shops etc 
• gives a cheque book 
• allows wages or benefits to be paid directly into the account 
• allows you to pay bills by direct debit or standing order 
• allows an overdraft with agreement from the bank

Be careful not to spend more than you have in your account because banks will add very high charges if you do.

Savings account 

• good interest rates for money saved 
• usually gives a cash card 
• allows wages or benefits to be paid directly into the account

Cash Cards and ATM Machines 

Most types of bank accounts have a cash card which allows you to draw money from an ATM (automated teller machine) or cash machine. When you are issued the card you are also given a Personal Identification Number (PIN) number which you must memorise. 

The card is linked directly to your bank account and any money you take out with the card comes straight out of your account.

Cash machines can be found outside most banks and in many shops, pubs, shopping centres etc. Most banks do not charge a fee for this service but there may be a charge for withdrawing money from a machine operated by a different bank to your own. 

When using a cash machine, follow the instructions on the screen. The machine asks for your PIN number - you type it onto the keypad when asked and type in the amount of money you want to withdraw. The machine then gives you the money.

Bank Cards or Plastic Money 

Many people have one or more bankcards, which allow them to buy goods in shops and to pay for other things. These are known as debit cards and credit cards. People tend to call this plastic money or just plastic. The cards usually have a microchip inside them. If you wish to pay for something using a debit or credit card, the shop assistant will ask that you check the amount you are to be charged (to make sure it is accurate), place your card in a machine and type in your PIN number. Plastic money saves you from carrying cash around and is very useful for paying for things over the phone or on the internet. However, you should always keep the details of your PIN number private to reduce the risk of fraud, or someone else using your card to buy things. Report any stolen or lost cards to your bank or building society immediately and check your statements regularly to make sure that you have only been charged for the things that you have bought. 

Debit Cards 

These can be used in shops, restaurants and other stores to pay for your shopping, for train tickets or to pay bills. The money is taken out of your account immediately and you are not usually charged for using your card to pay for things.

Some shops also offer a cash back service when you use your debit card.
This means that you can pay for your goods and also ask for some cash. The amount of cash that you ask for on cash back is added to the total of the goods that you have bought and the total amount will be withdrawn from your account. The cash amount that you can withdraw on cash back is usually up to the sum of £50. As with all other debit card transactions, any cash back that you take is charged directly to your bank account.

Credit Cards 

Many companies provide credit cards in the UK . These can be used in most shops, restaurants and other stores to pay for things such as train tickets or bills. The money you spend is billed to you at the end of the month, and you usually have about 30 days to pay back all or some of the money. 

After 30 days you start to pay interest on the rest of the money you still owe. The interest rates can be quite high (as high as 40% per year). Make sure you get a good deal and that the rates will not change unexpectedly. With a credit card you will have a limit set (for example £300 or £500 at first). 

If you do not make a payment in time or if you go over your limit you will be charged. Some shops also charge you a fee for paying by credit card.

Store Cards 

These are like credit cards but are operated by individual shops and can be used to buy things only from those shops. Again interest rates can be very high. The money you spend is billed to you at the end of the month. You usually have about 30 days to pay the money back.

Cheque (Guarantee) Cards 

If you write a personal cheque to make a payment for goods or services, the person taking your cheque may ask to see your cheque guarantee card. In most cases, your debit card and cheque guarantee card is the same card. The cheque card will show the highest value of cheque that you can write, for example, £50 or £100. 

Debt and Borrowing Money

The Directgov website has a number of sections which have very useful and current advice about debt and managing your money.

Sending Money

Sending Money within the UK  

The best and safest way to send money to another person in the UK is to use a personal cheque. If you do not have a current account, then you can use postal orders. You can buy postal orders equal to the amount of money you need to send from any Post Office. Some banks will let you send money to other people electronically over the telephone or through internet banking.

Sending Money Abroad 

You can send a Moneygram or International Money Transfer to most countries. 

You pay in cash the amount you are sending plus a fee. Money can also be sent overseas for a fee through other companies. They will tell you where the recipient can collect the money.

Paying for Goods and Services 

People do not haggle over prices in shops but this is sometimes possible in markets. It is better to look around for a price you can afford before deciding to buy. Paying in cash is still very common; however a lot of people now pay for goods and services using debit or credit cards. If you are renting accommodation privately and you have a bank account, you can choose to have your bills (rent, electricity, telephone, gas, etc) paid directly out of your current account by Direct Debit or Standing Order so that you do not have to remember to pay each month. See Section 7- Your Home for more information.

Shopping

Food Shopping 

Manchester has a large range of places to buy food such as supermarkets, corner shops, local markets, farmers markets and delicatessens. Prices vary greatly so try to check them before you shop. Most people do their main shopping at supermarkets, which, together with indoor markets generally have the cheapest goods. Fresh fruit and vegetables are usually (but not always) cheaper at markets and greengrocer shops than in the supermarkets. 

Many supermarkets and some shops can arrange to have your shopping delivered to you if you ask. 

All packaged food has one label saying when it must be sold by and another saying when you must eat it by. Supermarkets often cut the price of food nearing its sell-by date and you can get bargains this way. 

 

They also reduce prices of bread and some other fresh foods after 8.30 pm at night. It is worth checking the reduced to clear shelves in supermarkets: the products on these shelves are often there just because their packaging is damaged, but the contents are fine.

International Foods

Manchester supermarkets increasingly stock a range of international foods; they vary in price and can often be expensive. They may be changed to suit British tastes, so are not exactly the real thing. However, the city has a good range of stores selling authentic ethnic foods, mostly located in the areas where the ethnic communities live. Prices are usually good, and the produce is generally of good quality. If you have further questions about finding specific food items, contact your community organisation. The Refugee and Migrants Forum has a directory with details on refugee community organisations.

Shopping For Clothes

There are many different places to buy clothes from: 

• Clothes shops and department stores have a wide range of clothes. They can be expensive, but prices are often reduced during the sale periods. 
• Supermarkets, ex-catalogue shops and some of the high street shops can be a good place to get inexpensive clothes. 

Markets 

For even cheaper clothes visit the markets, for example the Arndale Centre indoor market in the city centre, Grey Mare Lane market in Beswick (Monday, Wednesday and Saturday), Longsight Market (Tuesday (second-hand/used goods), Wednesday, Friday and Saturday) or New Smith Market in Openshaw (Sunday mornings only). 

Charity Shops 

Charity shops have a long and honourable tradition in the UK . These shops (for example, British Red Cross, Oxfam, Age Concern) often have good quality used clothing at very low prices which they sell to raise money for their charity work. Many British people enjoy browsing in charity shops for unusual items and bargains and it is not seen as embarrassing to wear clothes from charity shops.

Jumble Sales

A jumble sale is a one-day sale run by a community group, school, charity or church to raise money. These are good place to buy decent second-hand clothes and other goods. They are advertised in local newspapers and outside the places where they take place. Prices are fixed but are usually very cheap (for example, pence rather than pounds).

Car Boot Sales

Another place to find second-hand items is to visit a car boot sale, which usually takes place in car parks or school playgrounds. Local people take items from their own homes that they no longer want and sell them very cheaply, so you might find some bargains.

Shopping for Household Goods

Charity shops are good places to get cheap second-hand furniture including reconditioned furniture and white goods (such as cookers and fridges). Some of these charities sell home starter packs containing essential basic furniture. These cost around £60.

The Furniture Recycling Network website lists the furniture and household goods charities in Greater Manchester.

The big supermarkets are good places to find cheap household goods such as bedding, irons, kitchen items including pans and knives as well as cutlery, plates and dishes. High street catalogue shops have a very big range of things for the house, often at reasonable prices. Always check your goods to see that nothing is broken or damaged before leaving the store if possible. Always keep your receipt safely in case you need to return what you have bought at a later date.

Other places to try for household items are the markets, jumble sales and car boot sales (see shopping for clothes above for details).

Returning Things You Have Bought 

It is a good idea to always keep the paper receipt when you buy something from a shop. 

In the UK , most shops allow you to return the item that you have bought within 28 days of buying it. They will give you your money back. 

The Directgov website has a Consumer Rights section which has advice and information on rights when shopping for goods and services and dealing with faulty goods, on scams and rip-offs.

Guarantees

If you have bought something such as an iron or a hairdryer and this breaks in less than a year after you bought it, it will be covered by a product guarantee. You can take it back to the shop with your receipt and ask for it to be repaired or exchanged for a new one. If you have lost the receipt, it may be more difficult to get a replacement, but it is still worth trying. For clothes and shoes you might need to prove that the problem is a result of bad production and not just because you have worn them too much, but the big stores are usually reasonable about accepting returned items.