Earlier this month, the government stated that there was up to £2bn of unclaimed assets lying dormant within the financial sector. These assets, have the potential to “transform the charity sector” and those that are striving to help improve communities and change lives.
These findings came from a report published by the Independent Dormant Assets Commission, set up in 2015 by the Minster for Civil Society. Its final report, Tackling dormant assets: recommendations to benefit investors and society, says in total up to £2bn in assets exist; this includes more than £700m currently stored in the investment sector and another £550m in the pensions and insurance sectors. You can read the full report here.
Dormant Bank and Building Society Accounts Act – Unlocking assets
The Act was passed back in 2008 by the government, giving access to any money held in an account which has been dormant for 15 years and passing these assets onto good causes. This Act has surpassed expectations, with nearly £1bn being passed onto banks to the Reclaim Fund which distributes the money out to charities and community projects. The latest commission has been tasked with identifying a level of comparable funding in other financial resources.
While much of this money will inevitably find a way back to its owner, it is predicted that more than £1bn will go to charities and other good causes.
Rob Wilson, the Minister for Civil Society, said:
“This money could help change millions of lives across the country by helping good causes rather than gathering dust in dormant accounts.
“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 to deliver really important local services over the long term.
“This is an example of an active government stepping in where it can make things better to the benefit of local communities and all concerned.”
“I’d like to thank the commission which has worked tirelessly with the financial services sector on this report and will study its findings closely.” Source: Civil Society