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.”