Nearly £900 million will be released from the Dormant Assets Scheme to support charities in the wake of the coronavirus pandemic, it has been announced.
The Government said a consultation will launch in the summer to consider what causes will benefit from the fund.
Under existing laws, just 35 banks and building societies are required to give dormant assets – defined as financial products which are open but have been inactive for at least 15 years – to social and environmental initiatives where it has not been possible to reunite people with their financial assets.
However, the scheme will now be extended to insurance, pensions, investment, wealth management, and securities sectors – unlocking as much as £880 million.
It comes after the Dormant Assets Act secured Royal Assent in February this year.
The Government has so far identified youth programmes, social enterprises, and money management services as potential recipients of the money.
Commenting on the scheme, 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.
“I encourage eligible organisations to participate in this unique opportunity, which is also inspiring other countries, to contribute to positive societal change.”
The latest statistics show that the Dormant Assets Scheme has released more than £800 million from dormant assets to support good causes since launching in 2011.
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