Charities to get £31m from release of dormant assets

Charity

Hundreds of charities and social enterprises are among those to receive a share of the latest tranche of hundreds of millions of pounds tied up in forgotten accounts.

The government today announced how £76m of the next £800m of dormant assets will be distributed.

Of the £76m, £31m will go to charities and social enterprises to retrofit premises with cleaner and greener energy systems, including new boilers, heat pumps, solar panels and lighting.

The money will be distributed by social investors Access and Big Society Capital.

The remaining £45m will be spent on no-interest loans for 69,000 individuals struggling with finances, distributed by Fair4All Finance.

Dormant assets are financial assets left untouched for long periods. Led by the financial services industry and backed by the government, the Dormant Assets Scheme aims to reunite people with these lost funds.

Where this is not possible, it can be transferred to the Dormant Assets Scheme to be distributed to social and environmental initiatives. 

It currently unlocks money from forgotten bank and building society accounts, but will soon include further assets from the insurance and pensions, investment and wealth management, and securities sectors. 

An estimated £738m more will be made available over time thanks to the expansion of the scheme to the new sectors.

Since 2011, £892m has been released via the scheme.

The government also announced that community wealth funds will become an additional beneficiary of the Dormant Assets Scheme.

The funds are pots of money distributed to communities in deprived areas and released over a long time period, with local residents empowered to make decisions on how to use the money.

Youth, social enterprises, and people in financial difficulty will continue to be supported, with previous beneficiaries including community centres and charities providing care for the socially isolated and elderly.

DCMS minister Stuart Andrew said: “The public consultation on dormant assets funding provided people with the opportunity to name how money that will be unlocked should be spent and I’m delighted to announce our plans to introduce community wealth funds as a new cause.

“The creation of community wealth funds will give local residents in some of the more deprived areas of the country the power to improve where they live and invest in what’s important to them.”

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