Dormant Assets Scheme to expand after Bill gets Royal Assent
Melanie May | 4 March 2022 | News
The Dormant Assets Bill received Royal Assent on 24 February, paving the way for the scheme’s expansion.
The expanded scheme will use dormant funds from insurance, pensions, investment and wealth management, and securities sectors, with this expected to release a further £880 million.
The first priority will continue to be reuniting people with their financial assets. Where this is not possible, more businesses will be able to voluntarily transfer dormant assets to Reclaim Fund Ltd. People will still be able to reclaim their assets in full at any time.
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A consultation will be launched this summer to look at what causes should benefit in England to help level up opportunities for young people and communities across the country. Proposals include boosting investment in youth programmes, social enterprises and money management.
John Glen, Economic Secretary to the Treasury, said:
“I am really pleased that the Dormant Assets Act has secured Royal Assent, which marks years of close collaboration with industry.
“This Bill is estimated to unlock more than £880m over time to benefit communities right across the U.K. I’d encourage as many firms as possible to take part in the Scheme, so that even more genuinely dormant funds can be put to good use.”
Since the launch of the Dormant Assets Scheme in 2011, participating banks and building societies have released more than £800 million from dormant accounts which are open but have been inactive for at least 15 years.
Last month it was announced that a further £44 million was going to good causes via the scheme, distributed by The National Lottery Community Fund.
The government announced its intention to expand the scheme in 2020.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.