An estimated £76m tied up in forgotten bank accounts is to be used to financially support people in debt as well as assist with UK social enterprises.

The cash, accessed using the government’s Dormant Assets Scheme, is to be unlocked through financial assets left untouched for long periods.

Led by the financial services industry and backed by the government, the scheme aims to reunite people with these lost funds. Where this is not possible, however, it can also be transferred to the Dormant Assets Scheme to be distributed to social and environmental initiatives.

Beneficiaries include no-interest loans for 69,000 individuals struggling with finances via a £45m grant distributed by Fair4All Finance, and hundreds of charities and social enterprises which will receive support from a pot of £31m, distributed by social investors Access and Big Society Capital. This will be used to retrofit premises with greener energy systems, such as new boilers or heat pumps, solar panels, and new lighting.

The scheme will also soon include further assets from the insurance and pensions, investment and wealth management, and the securities sectors, the government suggested.

Since 2011, a total £892m has been released via the scheme, according to figures from the Department for Digital, Culture, Media and Sport.

“Today we are announcing that millions of pounds will be redirected from dormant accounts to help the most vulnerable in society deal with the cost of living,” commented Culture Secretary, Lucy Frazer.

“This will have a real impact on people’s lives, help alleviate debt and provide money saving solutions for charitable organisations.”

Head of personal finance at Hargreaves Lansdown, Sarah Coles, commented that the scheme provides an opportunity to “support initiatives to boost people’s financial resilience”.

“For the most vulnerable, these no-interest loans could make a profound difference to their circumstances. However, there’s also the chance to use funds to improve financial resilience more broadly too, through initiatives like financial education.

“If you’re concerned you could have forgotten accounts, you don’t need to worry about your money being given away without your knowledge, because the scheme is designed to avoid scooping up anything other than completely lost assets. Even if you were unlucky enough to have assets brought into the scheme, you have the right to get all your money back at any time.”

Group general counsel and company secretary at Aviva, Kirsty Cooper, added: “I’m delighted with the government’s new announcement on future dormant assets funding.

“The expanded scheme will help to make a real difference to the lives of those people who need it most across society, freeing up millions of pounds at a time when financial hardship is a real cause for concern, and I welcome the news that financial inclusion will receive additional funding to support this.”

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