The government is set to unlock up to £330m from dormant bank and building society accounts to help build a fairer society.
Tracey Crouch, minister for sport and civil society, has announced that the funds will be used to help the homeless, disadvantaged young people, local charities and other good causes in the UK over the next four years.
Approximately £280m will be used across England to help disadvantaged young people find work, tackle problem debt and provide housing for families and vulnerable people.
Some £135m of this amount will be used by Big Society Capital (BSC) to provide funding for stable and long-term housing for vulnerable groups such as homeless people and those suffering with mental health issues, as well as supporting local charities and social enterprises.
Around £90m of the funding will be invested in supporting projects that will help disadvantaged young people into employment.
The remaining £55m is set to be allocated to financial inclusion and capability initiatives, which will tackle issues such as problem debt and improve access to financial products and services for people on lower incomes.
Up to £50m of the original £330m fund will be allocated to good causes in Scotland, Wales and Northern Ireland, which will be distributed by the Big Lottery Fund.
Ms Crouch said: “By unlocking millions of pounds from dormant accounts for a range of good causes, we can make a real difference to lives and communities across the country.
“This is part of the government's commitment to building a fairer society and tackling the social injustices that hold people back from achieving their full potential.
“I am grateful to the banks and building societies – as well as Reclaim Fund Ltd – for their work to free up these funds for good causes.
“Working in close partnership with the financial sector and civil society, we are determined to help create a country that works for everyone and build a Britain fit for the future.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
FP Show partners with Mortgage Sleep Out
The Finance Professional Show (FP Show) is lending its support to Mortgage Sleep Out, with the event hosting a number of initiatives to raise awareness and sponsorship for the charity fundraiser...
Gatehouse Bank strengthens specialist finance team
Gatehouse Bank has hired Zeenat Shaffi (pictured above) as a business development manager for its growing specialist finance team...
Close Brothers director to retire
Close Brothers Group PLC has announced that Elizabeth Lee, group head of legal and regulatory affairs, will retire from her executive director position at the end of the 2019 financial year...
Kent Reliance appoints two new senior BDMs
Kent Reliance – part of the OneSavings Bank Group – has appointed two new senior BDMs as it expands its nationwide offering...
Coutts partners with Mortgage Brain to offer products to intermediaries
Private bank Coutts has partnered with Mortgage Brain to make its products available – via the latter’s platforms – to UK intermediaries...
Charter Savings Bank launches two new accounts
Charter Savings Bank has introduced two new accounts: a 95-day notice account and a three-year fixed rate cash Isa...
FP Show reveals its largest and most diverse conference programme
The Finance Professional Show has confirmed its largest conference programme to date, hosting a selection of varied sessions throughout the event next month...
47% of SMEs prepared to move away from traditional banks
Almost half of SMEs in the UK (47%) would move to a challenger/digital bank or non-banking brand if they decided to switch, according to the latest research by Unisys Corporation...
Monese launches business account
Monese has launched a business account in the UK which will be bundled with its personal banking account...
Metro Bank provides £14m facility to support London office acquisition
Metro Bank has provided Kingsway Properties London with a £14m investment facility to support the acquisition of a five-storey office building in central London...
Tandem introduces new credit card blocking feature
Tandem has created a new card-blocking feature for its banking app which allows customers to react instantly to a misplaced card...