Around £2bn in dormant assets could have a transformative impact on voluntary sector funding, Minister for Civil Society Rob Wilson has announced.
The Dormant Assets Commission has identified vast sums of money lying unclaimed across various financial products.
The total includes £715m from investments and wealth management, £550m from the pensions and insurance sectors, £150m from securities, and £140m from banks and building societies.
The commission was formed in December 2015 to look at whether the existing dormant asset scheme, which includes funds in banks and building societies, could be extended to other financial services. Its report published today stated the estimated value of dormant assets could increase once the expanded scheme is operational.
The current scheme has already distributed £360m from accounts to go towards supporting good causes.
The commission’s report recommends that customers should continue to be able to reclaim lost assets at any time under the expanded scheme. Firms’ participation should continue to be voluntary, the commission said, but if take-up is low the government should look at why and whether there is a case for mandatory participation.
Minister for Civil Society Rob Wilson thanked the commission, and said the money it has identified could help change millions of lives.
“The reason I set up the commission was to unearth new resources that would allow our charities and voluntary groups to become more sustainable and independent. But crucially also to deliver really important local services over the long term.”
Chair of the commission Nick O’Donohoe said the dormant assets described in the report could be put to far better use.
“I am delighted we now have the potential to help good causes even more,” he said. “I hope the financial sector now supports our ambition by contributing dormant assets benefit to an expanded scheme.”
Access the report here.
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