Share

Dormant accounts bill becomes law, but with pledge to review

Dormant accounts bill becomes law, but with pledge to review
News

Dormant accounts bill becomes law, but with pledge to review

Finance | Ian Allsop | 3 Dec 2008

New legislation that enables unclaimed money in dormant bank accounts to be used for good causes has received Royal Assent, but the government has promised to review it after three years to ensure the banks are playing ball.

The Dormant Bank and Building Society Accounts Act allows for monies that have not been touched for 15 years to be used to support youth facilities, financial inclusion and social investment projects.

It is estimated that around £400m currently lying in dormant bank accounts could go to good causes, to be reinvested in the community through the Big Lottery Fund (BIG).

The Act received Royal Assent last week and contained the promise that in three years, the Treasury "shall carry out a review of the effectiveness of the efforts made by financial institutions to ensure that those entitled to money in inactive accounts are made aware of the fact".

It also said the review would examine how many banks and building societies have transferred balances, how much money has been transferred and how promptly.

Sector ‘delighted' with review

As the scheme will allow banks and building societies to commit to it on a voluntary basis, there have been concerns about how many would actually take part. The government's commitment to review the new law has been welcomed by sector bodies.

Ann Blackmore, head of policy at NCVO, said: "We are delighted that the government has listened to our concerns about the effectiveness of a voluntary scheme and committed to undertaking a review within three years.

"This is vital to monitor financial institutions' participation in the scheme and to ensure that the maximum possible is available for reinvestment in society. In the current climate, new forms of funding like that from dormant accounts will be ever more important."

Speaking on behalf of the Unclaimed Assets Charity Coalition, Richard Davidson, director of policy and public affairs at Cancer Research UK, said it was pleased the Act had been passed.

"It is crucial that this review is comprehensive and seeks to assess if attempts to reunite people with unclaimed financial assets have been sufficient. We hope that, if necessary, the review will lead to further government action on this important issue."

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Over £11m raised for MND Association and Macmillan from ice bucket challenge

19 Sep 2014

The Motor Neurone Disease Association has raised £6.8m from the viral fundraising craze the ice bucket...

DEC raises £102m in its 50th year

19 Sep 2014

The Disasters Emergency Committee and its member agencies raised £102m through two appeals in the last...

London Marathon runners raise £250m in past five years

19 Sep 2014

A quarter of a billion pounds has been raised by London Marathon runners in the past five years, according...

Lobbying Act comes into force today

19 Sep 2014

The Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014 comes into...

Devolution 'will affect how charities operate'

19 Sep 2014

The political landscape that charities operate in looks set to change following the Scottish decision...

Some charity leaders see themselves as ‘employees of government’

18 Sep 2014

Voluntary bodies and the state have become so intertwined that some charity leaders whose organisations...

JustGiving page for Manchester Dogs’ Home receives four donations a second

15 Sep 2014

JustGiving has said that donations going to an appeal for the Manchester Dogs’ Home following an arson...

Commission's new online charity search to launch soon after delay

15 Sep 2014

The Charity Commission’s searchable online register of charities is due to launch in beta this autumn,...

Charities warned that digital campaigns can be 'counterproductive'

9 Sep 2014

Charity digital campaigns can be counterproductive and will need to change to keep the attention of those...

Join the discussion

 Twitter button

@CSFinance