Latest from the UK Government;
Youth activities, community projects and other good causes could benefit from an additional £880 million, following government action to unlock cash tied up in dormant assets. The Dormant Assets Scheme – currently used by 35 banks and building societies to release £800 million – will be expanded to include the insurance, pensions, investment and wealth management, and securities sectors. The expansion of the scheme to unlock a further £880 million is part of the Dormant Assets Bill which is expected to receive Royal Assent today.
A consultation will be launched this summer to look at what causes should benefit in England to help level up opportunities for young people and communities across the country. Options include supporting young people following the government’s recently announced ‘National Youth Guarantee’, helping the national drive to support people struggling to manage their money, growing the social investment market, and addressing long-term funding to improve social infrastructure through community wealth funds.
John Glen, Economic Secretary to the Treasury, said:
I am really pleased that the Dormant Assets Act has secured Royal Assent, which marks years of close collaboration with industry.
This Bill is estimated to unlock more than £880m over time to benefit communities right across the U.K. 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.
The expanded Scheme will continue to have consumer protection at its heart, with participants’ first priority continuing to be reuniting people with their financial assets. Where this is not possible, more businesses will now be able to voluntarily transfer dormant assets to Reclaim Fund Ltd. People will still be able to reclaim their assets in full at any time.