The consultation was launched jointly by minister for the third sector Ed Miliband and Ed Balls, economic secretary to the Treasury, and calls for the sector’s opinion on the new plans.

“BIG has a UK-wide distribution infrastructure in place, capacity to handle assets on this scale, extensive experience of delivering community programmes and the know-how to distribute funding through a different range of organisations, particularly within the third sector,” the consultation said.

The funds released will be focused, in England, on youth services and financial inclusion. If there is enough surplus, a proportion of the available assets will also be used to develop the social investment market and contribute to the long-term sustainability of the third sector. Priorities for Scotland, Wales and Northern Ireland will be decided by their devolved administrations.

Liz Atkins, director of public policy at the NCVO, said she was concerned that the government was trying to direct the outcome of the consultation by specifying its preferred priorities for the resources so early on.

“It is vital that this is a genuine, transparent and Compact compliant consultation,” she said. “It is important to remember that these funds do not belong to government, nor to the financial institutions holding them, nor indeed to the voluntary sector. This is why it is essential that priorities for funding are decided following a full and open consultation with all stakeholders.”

To view the consultation visit: www.hm-treasury.gov.uk/consultations_and_legislation