Expansion of Dormant Assets Scheme to unlock £880 million for charities

The Dormant Assets Scheme will be extended to more industries to unlock millions of pounds for charities, it has been announced.

It comes after the Dormant Assets Bill received Royal Assent in February.

The initiative – currently used by just 35 banks and building societies – ensures cash and assets are given to good causes if they cannot be reunited with their owners.

A financial asset – such as a bank account – is considered dormant if it is open but has been inactive for at least 15 years.

According to the latest statistics, the scheme has delivered more than £800 million to charities – such as those helping to tackle social and environmental problems – since launching in 2011.

But the new legislation will extend the scheme to the insurance, pensions, investment and wealth management, and securities sectors – unlocking a further £880 million.

A consultation will be launched later this year looking at what causes should benefit, with opportunities for young people and communities at the top of the agenda.

Commenting on the changes, Nigel Huddleston, Minister for Civil Society and Youth, said: “The expansion of this fantastic scheme will help change people’s lives for the better.

“We are doubling the financial support it can provide to support our recovery from the pandemic and level up communities.”

John Glen, Economic Secretary to the Treasury, added: “This Bill is estimated to unlock more than £880 million over time to benefit communities right across the UK. I’d encourage as many firms as possible to take part in the Scheme, so that even more genuinely dormant funds can be put to good use.”

For help and advice with related matters, please get in touch with our charity finance team today.

Posted in Blog, Charities, Charities.