Today the government dropped a major move: unlocking £440 million in the first-ever Dormant Assets Scheme Strategy, channeling long-unused financial assets into programmes for families and young people across England. This isn’t just a money shuffle—it’s a lifeline for communities hit hard by the cost-of-living crisis and a chance to empower young voices. Here’s what’s going on—and why it matters.
What’s the Scheme?
The Dormant Assets Scheme redistributes “forgotten” money—unused cash in dormant bank accounts, insurance policies, pensions, and more—once the original owners can no longer be found . Typically, this money would sit untouched forever. Instead, the government, in partnership with financial institutions like JP Morgan, AON, Schroders, Jupiter, and Aberdeen, is redirecting around £440 million by 2028 into areas that need it most.
This is a major step forward—these funds are new money going into new programmes, not just recycling existing budgets. London and every region in England will see a slice of the pie. Here’s how it breaks down:
- £132.5m for projects that help disadvantaged young people take part in music, drama, sport, and other skill-building activities
- £132.5m for affordable loans and financial education to help families avoid high-interest lenders or turning to loan sharks.
- £87.5m to support charities and community organisations as social investment wholesalers.
- £87.5m funding community wealth initiatives so local people can decide how money is spent in their areas.
Why This Matters for Young People
- Tackling Opportunity Gaps
When youth drop out of after-school sports, arts, or drama because it’s “too expensive,” communities lose out. The scheme aims to bring those creations back— music production workshops, drama clubs, community sports. All proven tools to boost social skills, self-esteem, and employability. - Closing the Financial Literacy Gap
Just 40% of young adults are financially literate—and that drops to 26% if you’re unemployed. - This fund offers not just cash but training and support to build money confidence—budgeting, saving, managing household finances. It’s prevention over cure.
- Redirecting Vulnerable Households Away from Debt Traps
Want a washing machine but worry about loan sharks? Affordable credit becomes a real alternative. Vulnerable families get a cushion when sudden big-ticket items break down. - Putting Power in Community Hands
Community wealth funds—run by local people, for local people—mean those with lived experience help decide what projects are needed. It’s a bold move toward co‑produced funding, not just top-down policy .
Real Voices, Real Impact
Lisa Nandy, Culture Secretary, calls this strategy “transformational,” saying it delivers “real impact … as we deliver our Plan for Change” . Rachel Reeves, Chancellor, adds: “Turning forgotten assets into fresh opportunities … to help young people realise their potential” .
From frontline groups like the Duke of Edinburgh’s Award to community finance leaders, the reception has been overwhelmingly positive:
- Ruth Marvel (DofE Award) notes this funding will push youth work into disadvantaged backgrounds, boosting well-being and skills.
- Asher Craig (Pathway Fund) says this moment is “pivotal for Black and ethnically minoritised communities,” providing a vital shot at equitable finance .
Behind the Numbers: What This Means Day-to-Day
For Young Creatives
School bands, drama nights, sports lessons—they won’t just be for those who can pay. Equipment, venues, and coaches become accessible. Imagine community-run film festivals or youth-led musical projects that could spark a career.
For Families Struggling with Costs
When essentials break — fridge, boiler, car that gets you to a first job—this scheme offers quick, affordable loans, reducing dependence on payday lenders that trap households in debt.
For Community Organisations
Money is going directly to charities and grassroots groups—food banks, youth centres, parenting classes. This is social infrastructure with local impact, tackling loneliness, boosting safety, and building community pride.
For Charities and Social Businesses
Social investment wholesalers (like Fair4All Finance and Access Foundation) will use the funds to back small charities and social enterprises—the ones that create jobs, especially in deprived areas, and help launch youth into careers.
Challenges Ahead
This isn’t a silver bullet—success depends on:
- Effective local delivery: Funding hits where it’s needed, and organisations are equipped to use it.
- Staying Additional: Ensured by legislation, these funds are extra—not replacing core public services .
- Joining the Scheme: The more institutions (banks, insurers) onboard, the bigger the pot. Lobbying is still happening to expand involvement .
What Young People Should Do
- Get involved locally
Step up to community forums, share what’s needed—after-school clubs? mentoring? safe hang-out spaces? - Collaborate with youth charities
Ask local youth centres how they plan to use this money and offer your input. Massive opportunity to campaign for change from day one. - Watch for applications
Grants and affordable loans will become available; keep an eye on local councils, social investment platforms, and youth funding bodies. - Stay loud
Speak up in local campaigns, online forums, and on social media—ensure accountability and keep momentum rolling into 2028 and beyond.
Wrap-Up
This £440 million isn’t “free money”—it’s a statement. A statement that a generation worth investing in doesn’t just need hope—they need opportunity, support, and trust. That’s what building a thriving life in our 20s requires.
This is our moment to shape it. Forgotten assets might be forgotten no more—but they can be our asset, our future, and our story.
https://www.gov.uk/government/news/forgotten-assets-to-help-families-and-young-people-thrive
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