More than 拢800m in dormant assets across the insurance and pensions, investment, wealth management, and securities sectors are set to be unlocked to support the 海角视频鈥檚 recovery from the pandemic.
The 海角视频 Government had announced a major expansion of the Dormant Assets Scheme, currently covering banks and building societies, following the completion of a four year review and public consultation process.
The responses showed widespread support for expanding the scheme from bank and building society accounts to include assets in these new sectors.
The priority will continue to be locating and reuniting people with their financial assets.
However, where that is not possible, more businesses will now be allowed to participate voluntarily in transferring dormant assets into the scheme. People will still be able to reclaim their assets in full at any time.
The definition of a dormant asset varies according to the type of asset in question. In general it means a financial product, such as a bank account, that the customer has not for more than 15 years and which the provider has been unable to reunite them with, despite efforts based on industry best practice.
Funding raised through the expansion of the scheme will enable continued support of good causes, social investments and environmental initiatives across the 海角视频.
Since 2011, 30 banks and building societies participating in the current scheme have enabled the release of over 拢745m from dormant accounts that have been inactive for at least 15 years.
These funds have been used to support a range of social and environmental initiatives across the 海角视频, including helping young people on the path to employment, tackling financial exclusion, growing the social investment market, and supporting renewable energy solutions.
Some 拢150m was unlocked in May 2020 to support the 海角视频鈥檚 charity and voluntary sectors, as they continue to play a vital role during the coronavirus pandemic.
The funding is supporting work to tackle youth unemployment, expand access to emergency loans for civil society organisations and help improve the availability of fair, affordable credit to people in vulnerable circumstances.
The scheme has to provided approximately 拢650m in England, 拢62m in Scotland, 拢36m in Wales and 拢21m in in Northern Ireland.
This include more than 拢425m been used to establish Big Society Capital, an independent financial institution, launched in 2012, with the aim of growing the social investment market in the 海角视频.
To date, over 1,200 social enterprises and charities have received investment from Big Society Capital and the social impact investment market has grown from 拢830m in 2011 to 拢5.1bn
In Wales 拢10.4m of funding has been provided to the Engage to Change project since 2016, to break down barriers and stigma around disability by supporting 16-25 year olds with learning difficulties and/or autism into employment.
Working with over 800 employers in Wales, in the past five years the project has enabled 959 young people to develop new skills, 381 young people to secure a paid work placement, and 272 young people to move into secure employment after their work placement.
Oliver Dowden, Secretary of State for Digital, Culture, Media and Sport, said: 鈥淔unds raised through the existing Dormant Assets Scheme have already made a huge difference to vulnerable people and communities across the 海角视频, especially during the pandemic.
Expanding the scheme will mean hundreds of millions more for good causes, helping us to build back stronger in the years to come.鈥
Baroness Barran, Minister for Civil Society, said: 鈥淓xpanding the Dormant Assets Scheme provides us with two positive opportunities to highlight the importance of people tracing their lost financial assets. Firstly it will highlight the potential importance for people to trace their lost financial assets.
鈥淪econdly, where that is not possible, it will release over 拢800m for social investment that will make a real difference to people - both young and old - experiencing challenging circumstances across the 海角视频 as we work hard to recover from this pandemic.鈥
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