Dormant Assets Scheme reaches milestone of £1bn distributed to UK good causes
Melanie May | 7 January 2025 | News
The Dormant Assets Scheme has now reached £1 billion in distributions to good causes across the UK, according to its operator Reclaim Fund (RFL).
The unused financial assets from the Dormant Assets Scheme have gone to social and environmental initiatives via the National Lottery Community Fund, supported by more than 50 banks, building societies, and insurance and pension providers, which have transferred the dormant funds into the Scheme.
The Dormant Assets Scheme launched in 2011. In June 2023, it expanded to include insurance and pension assets, with Aviva joining as the expanded Scheme’s first participant. Conservative estimates suggest that this could unlock an extra £575 million.
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Last year, a further expansion was announced: to include dormant investment assets and client money.
Commenting on the £1bn milestone, Adrian Smith, CEO of RFL said:
“RFL would not have reached this fantastic figure of £1 billion without the long-term supportand participation of so many banks, building societies and other financial institutions who seek to reunite dormant assets with their owners or beneficiaries, and where this is not possible, transfer the money to the Dormant Assets Scheme. We continue to see firsthand how these otherwise dormant funds are creating a lasting, positive impact for communities across the UK.
“We look forward to continuing to strengthen this impact with the expansion of the Scheme into new financial sectors.”
Former Prime Minister Gordon Brown, who introduced the Scheme during his time in office, is now calling on other financial institutions to join:
“The unclaimed assets scheme has made possible £1 billion of investment to tackle some of the UK’s most challenging social problems. From supporting 25,000 disadvantaged young people in employment and training to expanding a social investment industry now investing £10 billion in UK charities and social enterprises, its impact has been transformative.
“In thanking the Board and staff of Reclaim Fund Ltd (RFL) for their tireless work, I call on more financial institutions with dormant assets to volunteer to join and release a further £1 billion for vital good causes in the coming years.”
Also commenting, Stephanie Peacock MP, Minister for Sport, Media, Civil Society and Youth, said:
“The Dormant Assets Scheme has proven to be life changing funding to good causes across the UK, benefitting thousands of people and communities as a result. Passing the milestone of £1 billion transferred is a testament to the power of industry and government in partnership, and an appropriate moment to recognise the contributions of all the banks, building societies and insurance and pension firms which participate in the Scheme.”
Marking the £1bn milestone
To commemorate the milestone, the team at Reclaim Fund, including Chair Lawrence M. Weiss, travelled to Blackpool to visit a recipient of dormant assets funding through Youth Futures Foundation (Youth Futures), which is one of the four organisations in England which receive dormant funds via the National Lottery Community Fund. Connected Futures, Youth Futures’ flagship systems change programme, works with place-based partnerships across England to develop and test new approaches to breaking down barriers and improving access to employment for young people from marginalised backgrounds.
Over £2.68mn is being invested over five years to support this approach in Blackpool, with a collective of local organisations working together to transform the support offered to young people to raise 16-24 employment, education and training rates in the town.
Paul O’Neill, Deputy CEO of Lead Project Partner Right to Succeed, said:
“Reclaim Fund reaching the £1 billion milestone is an incredible achievement. Their funding and support via the Youth Futures Foundation Connected Futures programme, has enabled our Blackpool Partnership to develop a collective, locally led, system-wide approach to addressing the youth unemployment issue in the town.
“We are extremely proud to be part of this programme and by working collaboratively with Youth Futures and sharing the learning and evidence of ‘what works’ in Blackpool, are determined to ensure that Reclaim Fund’s vital investment goes on to improve outcomes for young people both locally and nationally.”
Barry Fletcher, CEO of Youth Futures Foundation said:
“As one of the four Dormant Asset operating companies, this funding is enabling us to drive forward an ambitious plan to improve the employment outcomes of marginalised young people in England. Through it, we are finding and generating high-quality evidence to better understand England’s youth unemployment and inactivity challenge, and most importantly help create and embed solutions to address it. We look forward to working with the Reclaim Fund as we continue to work towards a society where every young person can achieve good work.”
Next four years
It was previously announced that £350mn of dormant assets funding over the next four years will be allocated equally across four spend priorities in England: young people, social investment, financial inclusion and community wealth funds. Northern Ireland, Scotland and Wales determine their own social and environmental priorities.
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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.