Government announces ‘significant uplift’ in dormant assets funding

The Department for Culture, Media and Sport (DCMS) has announced that £440m is set to be made available to good causes through the Dormant Assets Scheme Strategy by 2028, £90m above previous estimates.

The funding, which redirects money from unused financial accounts, will go towards four named causes.

This includes £132.5m for young people, focusing on supporting those in disadvantaged communities to take part in music, sport and drama and to improve their employment opportunities.

The same amount will go towards tackling financial inclusion, including providing people with affordable credit and supporting them to manage their money.

“This will mean that people facing money worries will have a safety net for when things go wrong – from a broken fridge to an unexpected car repair – instead of leaving them at the mercy of loan sharks,” said the DCMS.

Meanwhile, £87.5m each will be made available for social investment and community wealth funds.

In addition, money will also be made available to local charities and community groups to run food banks, youth clubs and community events to tackle loneliness and make neighbourhoods safer.

“From supporting young people and enhancing financial inclusion to driving social investment, this transformational funding will reach some of the most disadvantaged areas across the country and have a real impact on people’s lives as we deliver our Plan for Change,” said secretary of state for culture, media and sport Lisa Nandy.

Chancellor of the Exchequer Rachel Reeves added: “We’re turning forgotten assets into fresh opportunities by unlocking £440 million that would otherwise be sitting idle to help young people realise their potential, and ensure vulnerable families aren’t excluded from the financial products they need.”

Earlier this year it emerged that the Dormant Assets Scheme had distributed £1bn since it launched 14 years ago.

It originally used money from unused bank and building society accounts and has since expanded to include assets from insurance, pensions, wealth management and securities sector.