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LETS stands for Local Exchange Trading System or Scheme. It is a way of buying and selling goods and services within the local community without the need for money. It means a group of people sharing skills and services with each other. LETS is not a barter system such that it matches people in order to swap goods and services one to one. The point of LETS is to overcome the drawbacks of the simple bartering system due to the goods or services being of a different value. This is why money is required in the world. With LETS, as with money, you can earn credits from one person and then spend them later with another. |
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Last Updated ( Wednesday, 18 April 2007 )
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Each member of the local LETS community provides their "Offers" and "Needs". They create a list of all the goods and services that they have to offer and their value in the local currency unit. For example, lawn mowing for 10 Anchors per hour. They also provide a list of goods and services they need. These lists are then collated onto one master list and sent out to each member on a monthly basis. The lists can also be viewed online in the members section. This catalogue of Offers and Needs provides each member with the means to start trading. |
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A group of people within a local community pool their resources, and compile a directory of their skills, services and goods, along with requests for anything they want to buy, try out or loan. Anything in the directory can then be traded through a system of locally recorded accounts. Each member gets a personal account, starting at zero, and a local LETS cheque book. They use this to pay for whatever goods or services they choose. In this way, using LETS is like using a bank account, yet no actual money is deposited. The LETS accountant keeps track of these transactions from the cheque stub records and credits or debits your account. |
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Benefits of the LETS scheme |
- It's a chance to be involved with others in a cash free local economy
- It's non–profit making and interest free
- It's about spreading the wealth of skills and resources within a local community
- It's a chance to meet new people in your area who are interested in community action
- It's an opportunity to develop your skills and bulid a locally based economy
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Last Updated ( Wednesday, 21 March 2007 )
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The LETS "currency" system |
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Each LETS scheme has its own currency system. They are called Ideals in Bristol and Plums in Plymouth. Olivers in Bath and Brights in Brighton. Each local system uses a unit that measures the value of what is exchanged. Usually the value of the local LETS unit is loosely equivalent to £1.00. The local system or scheme chooses a currency name to reflect its locality. In Lewisham they are called Anchors. |
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