An expansion of the Dormant Assets Scheme may make millions more available for the charitable sector.
In a second phase of expansion, the Financial Conduct Authority (FCA) has amended its rules to enable dormant investment assets and client money to be part of the scheme.
The expansion of the scheme is estimated to potentially unlock a further £880m.
The first phase of the expansion, which covered insurance, pensions, and securities, was completed in August 2022.
The government published its response to the consultation on expanding the Dormant Assets Scheme last month.
The FCA said: “Led by industry and backed by government, the Dormant Assets Scheme aims to reunite people with their financial assets.
“Where that is not possible, this money supports UK growth through good causes such as getting young people into work or offering affordable credit to families.”
£350m for England over 2024 and 2028
Since 2011, it has unlocked more than £745m for social and environment initiatives, from over £1.35bn in dormant bank and building society accounts, the FCA reports.
The government has said the Dormant Assets Scheme is expected to release £350m for England over 2024 - 2028, and it intends to allocate this equally between four causes:
- £87.5m for the provision of services, facilities or opportunities to meet the needs of young people.
- £87.5m for the development of individuals’ ability to manage their finances or the improvement of access to personal financial services.
- £87.5m for social investment wholesalers.
- £87.5m for community wealth funds.
The £350m estimated to flow through into England includes funding from the banking sector, as well as the new expanded sectors.
It is estimated £82m will be available to Scotland, Wales and Northern Ireland over 2024-28.
Of the £880m expected to be unlocked through expansion, England is expected to receive £738m of this and the devolved nations are expected to receive £142m.
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