Unclaimed assets to improve young people's services across the UK

Funding from unclaimed assets could allow over 700 new places for young people to be built in England - equivalent to more than one in every constituency - providing young people with exciting, good-quality places with support and activities, so they can interact better with their local wider community, according to a consultation document published by Economic Secretary Ed Balls and Minister for the Third Sector Ed Miliband today.

Unclaimed assets would be distributed and reinvested in the community to fund youth services, financial capability and inclusion, and social investment, the document proposes. Youth services that could benefit from this include sport facilities, youth clubs, places to participate in activities such as dance and drama, and mobile youth centres.

The consultation document proposes using The Big Lottery Fund (BIG) to distribute the unclaimed assets. BIG has a UK-wide distribution infrastructure in place, the capacity to handle assets on this scale, extensive experience of delivering community programmes with emphasis on young people, and the know-how to distribute funding through a different range of organisations. Using BIG is an efficient way to distribute the assets and will limit spending on administration, meaning that as much money as possible reaches the front line.

Ed Balls said:

"The Government sees youth services as a priority. Young peoples lives can be greatly enhanced with good quality places for them to go to, together with support and activities.
"The Big Lottery Fund has the expertise, know-how and experience to distribute unclaimed assets funds across the UK and we hope the devolved administrations will decide to share our funding priorities of youth services, financial capability and inclusion, and social investment."

The Government also intends to use a proportion of the available assets to develop the social investment market and deliver more sustainable funding to social enterprises, charities and community groups. The Government will also consult on a specialist body to distribute the funds for social investment, which will be allocated via BIG.

Responses to the joint HM Treasury - Cabinet Office review of the future role of the third sector in social and economic regeneration revealed that access to appropriate finance is often the most significant issue of concern for third sector organisations.

Ed Miliband said:

"Ever since I became an MP I've been campaigning for better youth services in our country. We have to do more to celebrate and cultivate the positive role young people can play in our communities. Creating new spaces for young people in each and every part of the country is a significant step towards a much-needed culture change.
"Charities, social enterprises, voluntary and community groups all play a vital role in tapping the true potential of this funding to transform the landscape of youth services in this country.
"I also welcome the work done by the Independent Commission on Unclaimed Assets. Social investment can help improve communities by enabling third sector organisations to be more enterprising and sustainable. We welcome contributions, particularly from the third sector, about the best way to deliver such investment."

The priorities for the unclaimed assets spending on youth services will be informed by the outcomes of the Children and Young People's Review, which has taken extensive consultation with youth-focused third sector organisations, as well as young people themselves.

The consultation on the most effective way to distribute unclaimed assets follows on from the March 2007 consultation on the operations of the unclaimed assets scheme.

The devolved administrations of Scotland, Wales and Northern Ireland will determine the priorities for distribution of unclaimed assets in their own countries, which may differ from those for England.

Notes for editors

As announced in the 2005 Pre-Budget Report (PBR), the Government has been working with the banking industry to design a scheme to allow money in dormant accounts 'unclaimed assets' to be reinvested in society. This second consultation document, following on from the March 2007 document on the operations of the scheme, sets out proposals for distributing genuinely unclaimed assets on a UK-wide basis to the benefit of society.
The Economic Secretary, Ed Balls, launched a consultation document on proposals to introduce an unclaimed assets scheme in the UK, in order to allow money in dormant bank and building society accounts to be reinvested in society, without taking away consumers' rights to reclaim their money in March 2007. (PN 33/07)
The unclaimed assets scheme will be a UK-wide initiative and it is proposed that BIG will be primarily responsible for the distribution of assets across the four countries of the UK.
In keeping with the principles of devolution, the proposals to distribute unclaimed assets are designed in a way to allow administrations, who are better placed than the Government in Westminster, to determine their own priorities for spending which reflect the needs of communities in each country. Fund allocation to the four countries of the UK will be done on a population-based share of the assets available on a UK-wide basis.
Social investment is defined as investment made for a social purpose in organisations that are committed to delivering benefits for society and environment.
As set out in the 2005 PBR, the priorities for distribution in England will be youth services that are responsive to the needs of young people, and financial capability and inclusion.
The Government announced at the 2006 Budget that a review of the provision of positive activities for young people would form part of the Children and Young People's Review. The Review's remit was to inform Government spending and to identify priorities for the use of unclaimed assets. The final report of the Children and Young People's Review will be published later in the summer.
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