Over the past decade, in excess of £745m has been released from dormant bank and building society accounts and in doing so, has benefitted a wide range of social and environmental initiatives across the country. Now, with the expansion of the Dormant Assets Scheme to also include the insurance, pensions, investment, wealth management and securities sectors, it is anticipated that an additional £880m will be unlocked.
Here Stuart Rea, Head of FBC Manby Bowdler’s Charities and Not-for-Profit team, explains the significant implications this could have on the voluntary sector.
It’s always a pleasant surprise to find a ten-pound note hidden in an old pair of trousers and now, following the announcement in last month’s Queen’s Speech that the Dormant Assets Bill would be expanded, charities and social enterprises stand to benefit from the ultimate pleasant surprise that could amount to £880m and possibly even more in the future!
When financial assets cannot be reunited with their owners, these funds become dormant, and it has become an established model for charities to benefit from these funds. Until now, this has been limited to bank and building society accounts, but a significant expansion of the scheme will release a potentially huge jackpot of funds and the Government has made it clear that further expansion could be considered in the future.
It is all part of the Government’s commitment to support the country to Build Back Stronger following the Covid-19 pandemic and should be seen as a welcome development for the charity and voluntary sectors which have been so significantly impacted during this time.
Any charity or social enterprise interested in finding out more about how to assess these funds as they become available should contact Stuart Rea on 01743 284159 or stuart.rea@fbcmb.co.uk.
