Bill proposes use of dormant cash to fund youth services

The Dormant Bank and Building Society Accounts Bill, published yesterday, proposes that money lying in dormant bank accounts in England will be used to fund youth services.

The bill also proposes that ministers in Scotland, Wales and Northern Ireland will be free to choose on which causes to spend unclaimed assets in their provinces. If enough money is left over after youth services have been funded in England, it will be used to invest in financial capability and social projects.

“I am delighted that this legislation will enable unclaimed assets to be reinvested in society and will help the third sector contribute even more to our society, economy and environment,” said Phil Hope, Minister for the Third Sector.

It is proposed that banks enter the scheme on a voluntary basis after the Government decided not to legislate against institutions refusing to relinquish dormant accounts – defined as not having experienced any customer-initiated activity for 15 years.

Account holders would be able to reclaim their funds if the measure is passed, however. Assets would be pooled in a central reclaim fund regulated by the Financial Services Authority, which consumers would be able to approach to claim their funds back.

Resources from dormant accounts would be distributed to beneficiary organisations across the UK by the Big Lottery Fund.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in
Follow us on:

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert hub

Insurance advice from Markel

How bad can cyber crime really get: cyber fraud #1

Promotion from Markel

In the first of a series, we investigate the risks to charities from having flawed cyber security - and why we need to up our game...

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now