UK Dormant Assets Scheme Reaches £1 Billion Milestone in Distributions to Good Causes
Reclaim Fund Ltd (RFL) is proud to announce the transfer of a landmark £1 billion otherwise unused financial assets from the Dormant Assets Scheme to vital social and environmental initiatives across the UK via the National Lottery Community Fund.
This achievement highlights the collective impact of financial institutions across the UK who have partnered with RFL to unlock the potential in dormant funds. From supporting those in financially vulnerable situations to helping young people gain employment skills, the Dormant Assets Scheme continues to be an innovative solution that drives social change through sustainable funding.
Since the Dormant Asset Scheme's inception in 2011, over 50 banks, building societies, and insurance and pension providers have transferred otherwise dormant funds into the Scheme, enabling projects that change lives and transform communities across the UK.
Gordon Brown, Former Prime Minister of the United Kingdom, introduced the Scheme during his time in office. Today, he has commented on the Scheme’s “transformative impact” on society and called on other financial institutions to join.
"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. 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.
In thanking the Board and staff of Reclaim Fund Ltd (RFL) for their tireless work, I call on more financial institutions with dormant assets to volunteer to join and release a further £1 billion for vital good causes in the coming years."
Stephanie Peacock MP, Minister for Sport, Media, Civil Society and Youth, also welcomed the news, commenting:
“The Dormant Assets Scheme has proven to be life changing funding to good causes across the UK, benefiting thousands of people and communities as a result. 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.”
Adrian Smith, CEO of RFL said:
“RFL would not have reached this fantastic figure of £1 billion without the long-term support and participation of so many banks, building societies and other financial institutions who seek to reunite dormant assets with their owners or beneficiaries, and where this is not possible, transfer the money to the Dormant Assets Scheme. We continue to see firsthand how these otherwise dormant funds are creating a lasting, positive impact for communities across the UK. We look forward to continuing to strengthen this impact with the expansion of the Scheme into new financial sectors.”
Celebrating Scheme impact
To commemorate the visit, the team at Reclaim Fund, including its Chair, Lawrence M. Weiss, travelled to Blackpool to visit a recipient of dormant assets funding through Youth Futures Foundation (YFF), one of the four organisations in England which receive dormant funds via the National Lottery Community Fund. Connected Futures, YFF’s flagship systems change programme, works with place-based partnerships across England to develop and test new approaches to breaking down barriers and improving access to employment for young people from marginalised backgrounds.
Over £2.68m is being invested over five years to support this approach in Blackpool, as a collective of local organisations work together to transform the support offered to young people to raise 16-24 employment, education and training rates in the town.
Paul O’Neill, Deputy CEO of Lead Project 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.”
Barry Fletcher, CEO of Youth Futures Foundation said:
"It's fantastic to hear that the Reclaim Fund has reached such a significant funding milestone. This £1 billion Dormant Asset investment has unlocked funding that provides organisations nationwide the opportunity to deliver vital programmes that help our communities thrive.
As one of the four Dormant Asset operating companies, this funding is enabling us to drive forward an ambitious plan to improve the employment outcomes of marginalised young people in England. Through it, we are finding and generating high-quality evidence to better understand England’s youth unemployment and inactivity challenge, and most importantly help create and embed solutions to address it. We look forward to working with the Reclaim Fund as we continue to work towards a society where every young person can achieve good work."
Expanding the Dormant Assets Scheme
In June 2023, the Scheme expanded to include Insurance and Pension assets, with Aviva joining as the expanded Scheme’s first participant. This was a significant milestone for the Scheme, as conservative estimates suggested a potential extra £575 million in dormant life insurance and pensions policies could be unlocked.
Doug Brown, CEO of Insurance, Wealth, and Retirement at Aviva, said:
“We’re incredibly proud to have been the first insurer to join the Dormant Assets Scheme. Our priority is to reconnect our customers with their wealth, but where this isn’t possible, it’s fantastic to see those dormant assets making a significant and positive impact on individuals across the UK.
Celebrating this remarkable £1 billion milestone together is testament to the strong and ongoing collaboration between the industry and Government and we look forward to many more milestone moments in the future.”
Responses from dormant assets spend organisations
Seb Elsworth, CEO of Access – The Foundation for Social Investment said:
"Today’s announcement marks a significant milestone, with £1 billion from the Dormant Assets Scheme now distributed to good causes across the UK.
Through the work of Access and our partners, over 1,200 charities and social enterprises have benefitted to date from this transformative funding, enabling vital community organisations—often excluded from mainstream finance—to grow and thrive. This funding has also helped leverage additional funds from philanthropic and private sources.
Thanks to the financial institutions that have chosen to participate in this pioneering scheme, the Scheme is able to stimulate economic activity in deprived areas and drive real impact across communities in need."
Kate Pender, CEO of Fair4All Finance said:
“The funding we receive from dormant assets is providing people across the country with a stepping stone to financial resilience, improving their physical and mental health and enabling them to play a full part in their communities.
The Dormant Assets Scheme is a great example of how industry can work together to use funds for the benefit of society that would otherwise lay idle. £1 billion is a big milestone and with the Scheme expanding to include other assets, there’s a real opportunity to make the next milestone even bigger as more firms come on board.
With over 20 million people in financially vulnerable circumstances in the UK, the Dormant Assets Scheme is playing a vital role in delivering long term funding to increase financial inclusion and improve the lives of millions of people. We look forward to continuing to work with the Government and the financial services sector to deliver permanent change on this important issue.”