Some £1bn of otherwise unused financial assets have been donated to charities around the UK through the Dormant Assets Scheme via the National Lottery Community Fund, it has been announced.
The scheme, set up by the government in 2011, frees up assets, including those from bank accounts, insurance, pensions and wealth management funds, and initially aims to reunite them with their owners.
If it cannot do this, it uses the assets to fund charitable and social initiatives instead.
The donations of the dormant assets are facilitated by Reclaim Fund Ltd, a not-for-profit public body owned by HM Treasury and managed by UK Government Investments Ltd.
Since the scheme’s inception in 2011, over 50 banks, building societies, and insurance and pension providers have transferred otherwise dormant funds mounting to £1bn into the scheme.
The announcement comes after the government confirmed that £350m of dormant assets funding over the next four years will be allocated equally across four spend priorities in England – young people, social investment, financial inclusion and community wealth funds.
Northern Ireland, Scotland and Wales determine their own social and environmental priorities.
Gordon Brown: Impact of scheme has been ‘transformative’
Former prime minister Gordon Brown, who introduced the scheme while in office, said: “The unclaimed assets scheme, which I had the privilege to introduce and which now includes 50 financial services firms, has made possible £1bn of investment to tackle some of the UK’s most challenging social problems.
“From supporting 25,000 disadvantaged young people in employment and training to expanding a social investment industry now investing £10bn in UK charities and social enterprises, its impact has been transformative.”
Civil society minister Stephanie Peacock also welcomed the news, saying: “The Dormant Assets Scheme has proven to be life-changing funding to good causes across the UK, benefiting thousands of people and communities as a result.
“Passing the milestone of £1bn transferred is a testament to the power of industry and government in partnership, and an appropriate moment to recognise the contributions of all the banks, building societies and insurance and pension firms which participate in the scheme.”
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