Assets worth £76m lost in forgotten bank and building society accounts will be used to support vulnerable people as scheme extended to unclaimed life insurance and pension pots
The government has confirmed that the millions of pounds which have been unclaimed following the dormant assets programme will be given to charities to help people with the cost of living crisis and to get out of debt, while social enterprises will receive funds to support innovative energy saving solutions.
For the first time, community wealth funds will also receive money from the scheme. This money will be used exclusively in local communities in deprived areas and it will be released over a longer time period, with local residents influencing the expenditure. There will be a consultation on the proposals to gather local and stakeholder feedback.
The scheme will also be extended to include dormant assets from the insurance and pensions, investment and wealth management, and securities sectors. This expansion of the scheme is likely to increase the estimated cash pot to £738m. Since 2011, £892m has been given to worthwhile causes.
The latest beneficiaries will benefit from no-interest loans for 69,000 individuals struggling with finances via a £45m grant distributed by Fair4All Finance. Hundreds of charities and social enterprises will receive support from a pot of £31m, distributed by social investors Access and Big Society Capital. This will be used to retrofit premises with cleaner, greener, and more efficient energy systems, such as new boilers or heat pumps, solar panels, and new lighting.
Dormant assets are financial assets left untouched for long periods. Led by the financial services industry and backed by the government, the Dormant Assets Scheme aims to reunite people with these lost funds. Where this is not possible, the money is transferred to the scheme to be distributed to important social and environmental initiatives.
Culture secretary Lucy Frazer said: ‘Millions of pounds will be redirected from dormant accounts to help the most vulnerable in society deal with the cost of living.
‘This will have a real impact on people’s lives, help alleviate debt and provide money saving solutions for charitable organisations.’