A record £370m was set aside for good causes recently through the government’s Dormant Assets Scheme due to a change in distribution policy, according to recently filed documents.
The Reclaim Fund Ltd (RFL), which operates the scheme, reported this week that its board approved the £370m transfer to the National Lottery Community Fund (NLCF) on 8 July, which will take cumulative distributions since the scheme launched to more than £1.6bn.
It is the highest ever total set aside in a financial year in RFL’s 15-year history and is more than double the £143m pledged in the year to March 2025.
According to RFL, the distribution of funds was substantially higher due to “refreshed capital” from banks and building societies alongside a new strategy.
RFL’s new strategy uses a risk-based model to assess the funds it must retain to meet future customer reclaims and withstand severe stress events.
Any assets above the level required for provisions and capital can then be released for good causes.
RFL’s report states that, under the previous approach, the distribution provision would have been £185m but this doubled due to its changes to capital strategy and distribution policy.
Adrian Smith, the operator’s chief executive, said: “This has been an exceptional year for RFL and for the Dormant Assets Scheme.
“Our significant release of £370m reflects rigorous work to strengthen our reserving approach, while safeguarding dormant asset owners’ right to reclaim their money.”
Asset owners have the legal right to access their funds at any point by contacting their original financial service provider.
Since the fund’s opening in 2011, a total of £208m has been returned to 243,000 people who requested access to their dormant assets.
Funds transferred by RFL to TNLCF have been spent on youth, social and environmental causes, with more than £1bn donated as of January last year.
