Currently, dormant assets funding in England is required to be spent on three causes: youth, financial inclusion and social investment. As the national recovery from the COVID-19 pandemic continues, as well as cost of living pressures, the Government believes that now is the right time to review whether these remain the right causes for where funding from dormant assets can be allocated.
It comes as the Dormant Assets Scheme was recently expanded from bank accounts to include the insurance and pensions, investment and wealth management, and securities sectors, estimated to unlock around £880 million for good causes across the UK, £738 million of which will be made available for England over time.
The Dormant Assets Scheme is led by the financial services industry and backed by the government with the aim of reuniting people with these financial assets. Where this is not possible, the Scheme unlocks this money for social and environmental initiatives across the UK.
In England, the scheme has already channelled £110 million to breaking down barriers to employment for disadvantaged young people and £100 million to increasing access to fair and affordable financial products and services for vulnerable individuals. This is on top of £485 million of much-needed funding for both charities and social enterprises since the scheme’s inception.
Now, individuals, communities, and industry participants can have their say on what causes matter most to them. One option under consideration for views is a community wealth fund proposal that would see pots of money distributed over long periods of time in local communities in England, with decisions made by residents to make a difference where it is most needed.
All responses to the consultation will be carefully considered, if you have any further questions please email email@example.com
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