In his pre-budget speech to the House of Commons on 5 December, Gordon Brown said that he had reached an agreement with banks and building societies to release the money, which is estimated to be worth around £2.5bn.

The intention is to invest in “modern, relevant and welcoming” initiatives that will not only support wider youth services but will also enable young people to make their own decisions about the facilities they want.

He said: “As a first step, we will provide finance for each local authority to set up a young people’s fund; for amenities and activities run by young people; decided by young people themselves; on average half a million pounds for each local authority over the next two years to strengthen local communities.”

The news has been broadly welcomed. However, there have been some calls for the sector to be consulted prior to any funding decisions being made.

Megan Pacey, director of Policy & Campaigns at the Institute of Fundraising, said: “Any spending decisions for unclaimed assets must be based upon an open and transparent consultation process. UK charities will provide a vital route to market when distributing any unclaimed assets to good causes and the Institute is urging government to engage the voluntary and community sector actively in this consultation.”

For more on the sector’s response to the Chancellor’s announcement, see the December issue of Charity Times.