Social lenders outside England will not be able to receive money from the Big Society Bank that has been claimed from dormant bank accounts, according to Francis Maude, minister for the Cabinet Office.
Speaking during Cabinet Office questions in the House of Commons yesterday, Maude said the Big Society Bank would have a UK-wide remit, and that £200m invested in it by high-street banks would be available throughout the UK.
"But the money from dormant bank accounts will be for England only, unless the devolved administrations decide to put their share of that money into the bank, which I hope they will be encouraged to do," he said.
Maude also confirmed that the bank would not make grants.
"One of the problems in the social investment market was that Futurebuilders was able to give both grants and loans," he said. "That was very distorting for the large and growing number of intermediaries in the social investment market.
"We think it’s right that the bank is an investment organisation, not a giver of grants."
Maude said it was important that large foundations were encouraged to put more money into social investment.
Nick Hurd, the Minister for Civil Society, told MPs that no additional funding would be put into the £100m Transition Fund.