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Last updated: 23 November 2008
14 November 2007
The Government has published the Dormant Bank and Building Society Accounts Bill, which will allow money lying dormant in banks and building societies to be reinvested in the community.
The focus for the reinvested money in England will be on funding youth services, particularly places for young people to go, as well as financial capability, financial inclusion and, resources permitting, social investment.
The Bill enables ministers in the devolved administrations of Scotland, Wales and Northern Ireland to determine the distribution priorities in their areas.
Following a consultation, a dormant bank account has been defined as one where there has been no customer-initiated activity for 15 years. The industry and their representative bodies will launch a drive to reunite account holders with their lost accounts. If the account holder cannot be found, the money will be transferred to a central reclaim fund, regulated by the Financial Services Authority, which will hold back money should people later come forward to reclaim their accounts. The remaining money will be reinvested back into society.
Minister for the Third Sector Phil Hope said:
"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.
"Where unclaimed assets will be directed towards activities for young people, and where they will be invested to help people manage their finances, and, resources permitting, used to boost the social investment market, I know that third sector organisations will be at the heart of this reinvestment."
The resources to be distributed on a UK-wide basis by the BIG Lottery Fund. This will help to ensure a coordinated, transparent and effective allocation of funds, by building upon the BIG Lottery Fund's existing UK-wide infrastructure and expertise.
The Government has also published its response to two consultations on the unclaimed assets scheme.