Unclaimed Assets Boost Support for Families, Youth
First ever Dormant Assets Scheme Strategy unlocks £440 million funding
- First ever Dormant Assets Scheme Strategy unlocks £440 million funding for people and communities who need it most – redirecting money from long-unused accounts to important social causes
- Money will get young people involved in music, drama and sport, plus give thousands of vulnerable households access to affordable loans, delivering opportunity through Plan for Change
- Financial institutions including JP Morgan and AON welcomed to No11 today, as Chancellor and Culture Secretary encourage them to participate in the Scheme and support local communities
Families struggling with sudden costs and young people in deprived areas will get vital help, as £440 million from forgotten assets is put to work in communities across England through the first-ever Dormant Assets Scheme Strategy .
This includes £132.5 million to give young people in disadvantaged neighbourhoods new chances to take part in music, sport and drama to build skills for the future, improve their employment opportunities and ensure access is no longer the preserve of a privileged few.
A further £132.5 million will benefit those in financially vulnerable circumstances, providing them with the affordable credit and support they need to manage their money well. 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.
Local charities and community groups will also get extra funding, so they can run projects like food banks, youth clubs, and community events. This support will help bring people together, tackle loneliness, and make neighbourhoods safer and friendlier for everyone.
Chancellor of the Exchequer Rachel Reeves and Culture Secretary Lisa Nandy welcomed major financial institutions including JP Morgan, Schroders, AON, Jupiter Asset Management, Aberdeen Group and other industry champions into No11 Downing Street today, highlighting the tangible difference this money can make to local communities and encouraging future participation to support these important causes.
Secretary of State for Culture, Media and Sport, Lisa Nandy said:
“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.
“Made possible thanks to the ongoing support of our industry partners, I’ve been delighted to speak to financial institutions today as we look to bring in new sectors to support growth and drive opportunity across England.”
Chancellor of the Exchequer Rachel Reeves said:
“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. Through our Plan for Change, we’re backing communities and boosting opportunities to deliver growth and put more money in people’s pockets.”
Chris Cummings, CEO of the Investment Association said:
“We look forward to the further expansion of the Dormant Assets Scheme to the investment and wealth management sector. The Scheme has the potential to deliver real positive change to communities across the UK and our industry both warmly supports the initiative and is committed to exploring participating at the earliest opportunity.
“The Dormant Assets Scheme is an important opportunity for our industry to come together with government and deliver a positive, measurable social and environmental impact.”
The Dormant Assets Scheme has successfully released £1 billion to date to support thousands of frontline organisations and individuals in some of the most disadvantaged communities across the country. Funding has been channelled into a range of initiatives including tackling youth homelessness, supporting charities with the cost of living and breaking down barriers to financial inclusion to help vulnerable groups.
The £440 million package announced today represents a significant uplift with an estimated £90 million over previously announced figures set to become available through the Scheme in England by 2028.
Allocations set out in the Strategy will drive forward the growth and opportunity missions in the government’s Plan for Change, with full distributions to include:
- £132.5 million for young people with funding going to services, facilities and opportunities to provide them with the skills and resources needed to succeed
- £132.5 million for financial inclusion and education, equipping individuals with the tools and knowledge to build financial security
- £87.5 million for social investment to strengthen the financial resilience of the voluntary sector, including £12.5 million reaching organisations that support youth outcomes
- £87.5 million for community wealth funds, which will empower local people to make decisions about their communities, creating stronger neighbourhoods.
Notes:
- The Dormant Assets scheme redirects money from long-unused financial accounts to social causes, while preserving the original owners’ right to reclaim their funds.
- The Dormant Assets Strategy sets out this government’s bold vision for the pioneering Dormant Assets Scheme, unlocking funds to support the communities who need it most and is available to view here .
- The Strategy for the Scheme is centered around three long-term objectives:
- Achieving long-term systems change through innovative programmes.
- Protecting the integrity of the Scheme and its funding.
- Becoming the best practice standard mechanism to deal with dormancy.
- The Strategy reaffirms the importance of the collaboration between government and the financial services sector to make a success of the Dormant Assets Scheme
Last year, the government committed between the four named causes of the Scheme – financial inclusion, youth, social investment and community wealth funds – to break down barriers and drive growth as part of the Government’s Plan for Change.
- Participants in today’s roundtable included representatives from JP Morgan, Schroders, AON, Jupiter Asset Management, Aberdeen Group, alongside industry champions from across banking, investment, wealth management, insurance and pensions sectors.
https://www.gov.uk/government/news/forgotten-assets-to-help-families-and-young-people-thrive