A new tranche of dormant assets is set to benefit hundreds of charities and enterprises across the country.
They will receive £31 million from the dormant assets scheme, the Department for Culture, Media and Sport (DCMS) has announced.
Dormant assets are financial products that have not been used by the customer for several years, with the provider unable to reunite them with their funds. Customers have the right to reclaim their assets at any point.
DCMS said that an extra £76 million of funding will be allocated to people who are struggling with the cost-of-living crisis.
Some £31 million of the £76 million funding will enable charities and social enterprises to retrofit premises with cleaner, greener and more efficient energy systems.
Of this, 41 per cent will be distributed to charities and social enterprises by social investors Access and Big Society Capital (BSC).
The rest of the funding, which will be distributed by Fair4All Finance, will help community finance providers, expand the No Interest Loan Scheme to reach 69,000 more people who are facing financial hardship and deliver more affordable debt consolidation loans to reduce people’s overall debt burdens.
DCMS also announced that community wealth funds, long-term funding pots for communities in deprived areas, will now be considered as an option for the English portion alongside youth, financial inclusion and social investment wholesalers.
This month’s announcement comes after a public consultation last summer which aimed to determine how the next tranche of dormant assets, worth £880m, should be spent.
The Government said it will shortly launch a public consultation on how the new community wealth funds will be delivered.
If you need any guidance on how you can benefit from this latest release of funds, please contact us.