The government owned company that runs the Dormant Asset Scheme has announced it has reached the £1bn milestone of transferring unused financial services account funds to good causes.

Reclaim Fund Ltd has announced that the landmark figure has been reached 14 years after the scheme's launch.

It had been introduced by Labour prime minister Gordon Brown, who praised the “transformative impact” of the Scheme in supporting social and environmental good causes.

The unclaimed assets scheme, which I had the privilege to introduce and which now includes fifty financial services firms, has made possible £1 billion of investment to tackle some of the UK’s most challenging social problems,” said Brown.

“From supporting 25,000 disadvantaged young people in employment and training to expanding a social investment industry now investing £10 billion in UK charities and social enterprises, its impact has been transformative.”

The Dormant Asset Scheme uses money from unused bank and building society accounts. It has since expanded to include assets from insurance, pensions, wealth management and securities sector.

Three years ago, the government revealed that this enlarged scheme would be used to support youth, financial inclusion, social investment wholesalers and community wealth funds.

At the end of 2024 the government said that all four of these good causes will share the money equally with £87.5m being distributed over the next four years to each of them.

Money from the scheme is distributed via the National Lottery Community Fund (NLCF).

Charities minister Stephanie Peacock said that the scheme “has proven to be life changing funding to good causes across the UK, benefiting thousands of people and communities as a result”.

She added; “Passing the milestone of £1 billion transferred is a testament to the power of industry and government in partnership, and an appropriate moment to recognise the contributions of all the banks, building societies and insurance and pension firms which participate in the scheme.”

Support for young people

To mark the £1bn milestone Reclaim Fund leaders, including its chair Lawrence Weiss, visited a youth employment and training project in Blackpool, which has received funding through Youth Futures Foundation, one of four organisations that receives the funds from the NLCF.

Paul O’Neil, deputy chief executive of the project’s lead partner Right to Succeed, said: “Reclaim Fund reaching the £1 billion milestone is an incredible achievement.

"Their funding and support via the Youth Futures Foundation Connected Futures programme, has enabled our Blackpool Partnership to develop a collective, locally led, system-wide approach to addressing the youth unemployment issue in the town.

“We are extremely proud to be part of this programme and by working collaboratively with Youth Futures and sharing the learning and evidence of ‘what works’ in Blackpool, are determined to ensure that Reclaim Fund’s vital investment goes on to improve outcomes for young people both locally and nationally.”

---