Civil society organisations have welcomed a pledge by the government this week to redistribute millions more from long-unused bank accounts to good causes.
The government’s first ever dormant assets scheme strategy, published yesterday, included a pledge to divert £440m to social causes in England by 2028, a £90m increase on previously announced figures.
It pledged to allocate £87.5m through social investment to strengthen the financial resilience of the voluntary sector, including £12.5m for youth organisations.
The government said it would also distribute £87.5m to community wealth funds, which invest in disadvantaged local communities.
And it committed to allocate £132.5m to services for young people and the same amount for financial inclusion and education.
Culture secretary Lisa Nandy said: “This transformational funding will reach some of the most disadvantaged areas across the country and have a real impact on people’s lives as we deliver our Plan for Change.”
Chancellor Rachel Reeves said: “We’re turning forgotten assets into fresh opportunities by unlocking £440m that would otherwise be sitting idle to help young people realise their potential, and ensure vulnerable families aren’t excluded from the financial products they need.”
Fund ‘will help build social and economic capital’
This week’s announcement comes after the previous government ran a consultation in 2023 on the creation of a community wealth fund (CWF) in England, funded by dormant assets.
Rachel Rowney, chief executive of Local Trust, founding member and secretariat to the Community Wealth Fund Alliance, said the funding announced this week would enable a CWF to support the rebuilding of social infrastructure in some of England’s most deprived areas.
She said: “The fund will help build vital social and economic capital and lay the foundations for lasting positive change in these areas.
“Today’s announcement is only the start, however, and we await further detail on the CWF’s design in the government’s response to the technical consultation.”
Ruth Marvel, CEO of the Duke of Edinburgh’s Award, welcomed the pledge to distribute £132.5m to support opportunities for young people.
She said: “This funding means that more young people from disadvantaged backgrounds will be able to access youth work and enrichment activities that are proven to boost their wellbeing, skills, and employment prospects.”
Marvel added: “We look forward to working with the government and the National Lottery Community Fund to ensure that this investment has maximum impact for young people and supports the many youth work charities and volunteers who are on the front line of supporting young people to thrive.”
Simon Dukes, CEO of affordable lender and recipient of dormant assets funding Fair for You, also welcomed the strategy.
“We are grateful that the government continues to recognise the significant social impact of Fair for You and other responsible lenders, and to invest dormant assets in this sector,” he said.
‘Pivotal moment for minoritised communities’
As part of the strategy, the government has pledged £12m to impact investment wholesaler the Pathway Fund.
Pathway Fund’s chief executive Asher Craig said: “This is a pivotal moment for Black and ethnically minoritised communities.
“The earmarked £12m commitment to Pathway Fund is more than a financial investment – it is a powerful endorsement of the talent, innovation, and resilience that exists within the communities that have been historically excluded from mainstream finance.
“For too long, structural barriers have prevented Black and ethnically minoritised-led organisations from accessing the capital they need to grow, scale, and thrive. This was identified by the Adebowale Commission on Social Investment.
“The dormant assets strategy begins to right those imbalances, by helping us to build a social investment market that is more equitable, inclusive, and fit for purpose.
“At Pathway Fund, we are ready to scale our impact.
“We will be working, following this announcement, to unlock opportunities, grow the capacity of underfunded, mission-driven enterprises, harness the potential of our younger generations, and shift power to leaders rooted in the communities they serve.
“This is about long-term, systemic change and we are proud to play a central role in making it happen.”
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