Smith said: “The dormant assets scheme has a clear purpose and a unique role in uniting public, private and third sectors to deliver a demonstrable, positive impact in our most vulnerable communities.
“We are delighted to open the scheme to financial institutions with dormant insurance and pensions assets enabling them to participate alongside established banks and building societies.”
Smith said the scheme is straightforward to join, tightly regulated and carefully managed so customers can trust in the lifelong promise that they can reclaim any dormant assets at any point in time.
Social impact
Dormant assets funding is distributed through the National Lottery Community Fund across the four nations of the UK in line with policy direction from the government and devolved administrations.
In England, dormant assets funding is used to support financial inclusion, youth and social investment through four dormant assets spend organisations: Big Society Capital; Access – the Foundation for Social Investment, Fair4All Finance and Youth Futures Foundation.
In March 2023, following a public consultation, the government announced that funding for these causes would continue, alongside a new cause, community wealth funds.
It said some £800mn sat in dormant bank accounts and pensions will be used to boost local communities and those struggling with the cost of living.
The Department for Culture Media and Sport said at the time that the dormant assets scheme will immediately re-distribute £76mn sat in forgotten bank accounts, with a further £738mn made available over time.
Andrew Griffith, economic secretary to the Treasury, said: “This is a significant moment for the Dormant Assets Scheme and an important reminder of the financial services sector's vital role in driving economic growth and supporting communities and citizens across the UK.
“I look forward to working with Aviva and other industry participants as the scheme opens up to additional asset classes throughout the year, unlocking millions of pounds for good causes across the country.”
sonia.rach@ft.com
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