Charities and other noble causes are set to benefit to the tune of £44 million with donations from the Dormant Assets Scheme.
The Government says that the funding will help tackle youth unemployment, support communities in deprived areas and give people in need access to finance and will take the total donated by the scheme to almost £850 million over the past decade.
Dormant assets are funds held within financial services products that have been idle for 15 years or more, and despite attempts to trace their owners, they have not been reunited with their money.
Now a Government Bill, set to become law in Parliament, will cast the net wider to include dormant assets from the insurance and pensions, investment, wealth management and securities sectors.
The National Lottery Community Fund will distribute the latest £44 million grant, as following:
- £20 million will go to Access – The Foundation for Social Investment, to provide urgently-needed finance for up to 1,000 charities and social enterprises, particularly in more deprived areas.
- £20 million will enable Youth Futures Foundation to evaluate and evidence the best approaches to breaking down barriers and improving access to employment for disadvantaged young people.
- £4 million will allow Fair4All Finance to accelerate its work on affordable consolidation loans for people in financially vulnerable circumstances.
The Department for Digital, Culture, Media & Sport (DCMS) says there are 30 participating firms in the scheme, which will continue to have consumer protection at its heart, with participants’ priority remaining reuniting people with their assets where possible.
More businesses will soon be able to voluntarily transfer dormant assets into the scheme, unlocking funding for social and environmental causes across the UK that are additional to central or devolved Government funding.
David Knott, Chief Executive of The National Lottery Community Fund, said: “The money unlocked through the Dormant Assets Scheme will be widely welcomed and comes at a challenging time for communities.
“We’re delighted to be distributing this £44 million, to support charities and social enterprises working to help people in some of the most deprived areas of England. This vital funding will have an impact on people’s lives and support them towards a more prosperous and thriving future.”
For help and advice on matters related to funding please contact our experienced charity finance team today.