Ministers extend Dormant Assets Scheme

The government has announced it is to expand a scheme, which uses money left dormant in bank accounts for decades to support good causes.

The Dormant Assets Scheme was first launched in 2011 and utilises cash from bank and building society accounts, which have been inactive for at least 15 years.

According to the government, 30 banks and building societies have participated in the current scheme, raising £745m.

And now ministers have said the scheme will be expanded across the insurance and pensions, investment, wealth management, and securities sectors.

The Department for Culture, Media and Sport estimate more than £800m could be made available through the extension to help young people on the path to employment, tackle financial exclusion and supporting renewable energy solutions.

More than £425m recovered through the Dorman Assets Scheme has been used to establish Big Society Capital.

To date, over 1,200 social enterprises and charities have received investment from Big Society Capital and the social impact investment market has grown from £830m in 2011 to £5.1bn.

Another recipient is Fair4All Finance, which has received £96m to increase the financial resilience and wellbeing of people in vulnerable circumstances through improving availability of fair and accessible financial products and services.

‘Expanding the Dormant Assets Scheme provides us with two positive opportunities to highlight the importance of people tracing their lost financial assets,’ said civil society minister, Baroness Barran.

‘Firstly it will highlight the potential importance for people to trace their lost financial assets.

‘Secondly, where that is not possible, it will release over £800m for social investment that will make a real difference to people – both young and old – experiencing challenging circumstances across the UK as we work hard to recover from this pandemic.’

Photo Credit – QuinceCreative (Pixabay)