Dorment accounts

ahai1

I have posted something about them in the current accounts section but it was on a slightly different topic.

I have been informed that the money will go to community groups. Does anyone know when it is going to be dished out? and how to apply for it?

fengirl_2

The bill had its third reading yesterday and goes back to the Commons for consideration of the amendments on 19th Nov.

ahai1

I just had a very brief look at it on BBC Parliament but don't know the ins and outs.

SueMaggie

The Dormant Bank and Building Society Accounts Bill (currently under discussion in Parliament) proposes using The Big Lottery Fund to distribute money gathered from dormant accounts. This money wouldn't be lumped in with Lottery money but would be kept separate and awarded separately. It's likely that applications for funding from the unclaimed assets/dormant account funding would be made in the same way as you would currently apply for lottery funding, but part of the Bill says that the Big Lottery Fund has to come up with plans on how to hand the money out.

The Bill says that in England the assets will be spent with three aims in mind: providing opportunities for young people; improving financial capability and supporting institutions involved in social lending (eg credit unions).

However, the Scottish, Welsh and Northern Irish "governments" will be able to set their own priorities for distribution to reflect the needs of communities in each country.

As the Bill hasn't yet become law it's impossible to know when you can start applying for grants, but this will become clearer when the Bill is agreed. However there's usually a period of around a year from when the Bill becomes law to when it actually comes into force.

So at a rough guess, I'd say the earliest you could apply for some "dormant funds" is likely to be end of 2009/early 2010.

ahai1

Do you know how much money is involved in this?

SueMaggie

During a debate on the Bill in the House of Commons on 6 October 2008, the figure of around £500 million was mentioned, though the exact figure isn't clear.

Here's a link to a transcript of the relevant debate -

http://www.theyworkforyou.com/debates/?id=2008-10-06a.39.1

ahai1

Thanks for the info. I would love to know how to get our hands on it when the time comes as we can do with the money for our projects.

ahai1

I am bit confused. How could it become law as Parliament has only started today? http://www.charityfinance.co.uk/home/content.php?id=2429&pg=15&cat=58

Savvy_Sue

It appears from your link that the bill received Royal Assent last week. The Queen hasn't been on holiday even if MPs have.

ahai1

I thought that it was going to be passed in 2009. I was not even aware it had been throguh parliament.

Anyway when is the money going to be released? For what purposes?

fengirl_2

I think there was talk of it going to youth work. I wouldn't hold your breath as the bill has only just been passed - the government will now need to identify who is going to distribute the money and what the criteria will be. I hope there will be a consultation.