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

Billions unclaimed in pensions and investments could go to good causes

Written by: Paloma Kubiak
Billions of pounds worth of cash sitting in untouched pensions and investments could be given to good causes under plans to expand the government's dormant accounts scheme.

The government has appointed four ‘business heavyweights’ to work with the banking, securities, pensions, insurance, wealth management and investment sectors to increase the amount of dormant funds that can be released for good causes.

An estimated £2bn sits unclaimed in the pension, insurance, and investment and wealth management sectors.

Under the current dormant accounts scheme, bank or building society accounts that have been left completely untouched for more than 15 years could be used for good causes but consumers are able to reclaim any asset that has been classed as dormant at any time.

The new team will work to see how this can be expanded to a wider set of financial assets including stocks, shares, pensions or bonds, as long as it can be proven every effort has been made to track down the account holder.

They will also bolster efforts to reunite customers with assets from bank accounts that have been untouched for more than 15 years.

DCMS said banks have transferred the contents of millions of accounts so far, with the average account containing less than £100. See’s Millions left unclaimed in dormant accounts: how to trace your money for more information.

According to Aviva, generally, a life and pension asset is considered dormant only once there has been no contact with the customer for at least seven years after the policy has ended. For products which have no contractual end date, the asset would be considered dormant once there has been no contact for at least seven years after the customer has either reached a very old age or has passed away.

The new team includes:

  • Insurance and pensions industry champion – Kirsty Cooper, group general counsel and company secretary at Aviva
  • Banking industry champion – Simon Kenyon, managing director of consumer banking at Lloyds Banking Group
  • Investment and wealth management champion – William Nott, strategic adviser to M&G
  • Securities champion – Robert Welch, group company secretary at Tesco.

John Glen, economic secretary to the Treasury, said: “We introduced the dormant assets scheme with the aim of changing the lives of millions of people across the country through good causes. But without the support of businesses, the scheme wouldn’t be what it is today.

“I’m delighted that these highly-experienced business leaders have agreed to be our new industry champions. Their expertise will be vital as we look at ways to expand the scheme, and I look forward to working with them to reach even more people.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

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

Read previous post:
Pay gap between young and old workers up 50% in 20 years

The pay gap between the under-30s and over-30s has risen by more than half in the last two decades, according...