Millions to be released from dormant accounts for cost-of-living support

The funding, worth £76m, will come through its Dormant Assets Scheme and will support people to get out of debt and assist with energy saving solutions.  

Its beneficiaries include no-interest loans for 69,000 individuals struggling with their finances via a £45m grant distributed by Fair4All Finance, while hundreds of charities and social enterprises will receive support from a pot of £31m, with this funding being distributed by social investors Access and Big Society Capital.  

In response, Fair4All Finance chief executive Sacha Romanovitch said: “We’ve already seen the vital impact dormant assets funding can have and we’re delighted that financial inclusion will remain a cause of the expanded scheme.  

“We’re also grateful to receive an extra £45m in funding from the existing scheme. This allows us to make a real difference right now and supports the longer term change needed to establish a financial services market that serves everyone. 

“We’re grateful to everyone who responded to the consultation and offered their perspectives on the future direction of dormant assets spending. We’re really pleased the financial services industry was unanimous in their support for financial inclusion in the consultation.

 
“Without this support our work would not be possible. 

“17.5 million people are in financially vulnerable circumstances. Given the size of this issue, long term funding and collaboration is crucial to ensure that people have access to the financial products and services they need.” 

The Dormant Assets Scheme is designed to unlock money from forgotten banks and building society accounts and will soon include further assets from the insurance and pensions, investment and wealth management, and securities sectors, with an estimated £738m more being made over time thanks to the expansion of the scheme.  

Community wealth funds – a pot of money distributed to communities in deprived areas and released over a long period of time – will also become a beneficiary of the scheme.