You are here: Home - Investing - Experienced Investor - News -

Dormant account scheme to include unclaimed insurance and investment assets

Written by:
The government is looking to extend the dormant assets scheme to include more unclaimed money from financial products with the funds used for good causes.

Since 2011, 30 firms, including all the major high street banks, have voluntarily transferred money from unclaimed accounts into the dormant assets scheme.

So far, more than £600m has been given to good causes such as to help young people gain employment, to benefit social causes and tackle financial exclusion.

But the government is looking to expand the scheme to cover insurance, investment and wealth management as well as securities in a bid to free up additional hundreds of millions of pounds for good causes.

A bank or building society account is considered dormant where there’s no activity, typically between one and three years. After 15 years, Reclaim Fund Limited distributes funds to The National Lottery Community Fund which makes money available for schemes in England, Scotland, Wales and Northern Ireland.

However, the consultation lays out proposals for the definition of dormancy, tailored to each asset type. The Department for Digital, Culture, Media and Sport (DCMS) added it’s “not minded to include pensions” given the plan for the pensions dashboards but encourages views on this as part of the consultation process.

Further, it said consumer protection “will remain at the heart of any expanded scheme”, with the priority to continue to reunite customers with their money. Only where it’s not possible to find the asset owner, will funds be released to support worthy causes.

However, if at a later date a consumer discovers they had a dormant account and their funds have been transferred into the scheme, they will always be able to reclaim the full amount transferred.

Minister for Civil Society, Baroness Barran, said: “The dormant assets scheme is making a real difference to people across the nation. This includes helping to tackle youth unemployment, addressing financial exclusion and growing the social investment market.

“That’s why we are now seeking views on expanding the scheme to include even more unclaimed assets, in a way that continues to protect customers whilst potentially unlocking millions more pounds for good causes.”

See’s guide on how to reclaim lost money.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week