Prime Minister David Cameron has revealed that he will use dormant savings in bank accounts across the country to fund the idea of a 'big society' bank . It is estimates that £500 million lies in savings accounts that are dormant in the UK, of which Cameron plans to use £60 million. The unclaimed money will go towards helping voluntary groups, charities and social enterprises to run public services. Funding for the remaining cost of the scheme will be sourced from private investment .
The Co-operative bank will be responsible for establishing a central reclaim fund by the end of the year, with the first release of excess funds set to occur in mid-2011 - a release which is expected to free up between £60 million and £100 million.
Though Cameron is championing the idea as his own, it was in fact Gordon Brown who first put forward the idea of using funds from dormant bank accounts for youth and community projects. Critics opposed the plans at the time, and again in 2007, questioning the legality of the proposals and the administrative chaos that would ensue. Cameron has faced no such issues, following the passage of the 2008 Dormant Bank and Building Society Act.
Big Society Plan to Use Dormant Bank Savings
Financial Services > e-banking > Banking news
Big Society Plan to Use Dormant Bank Savings
Wed, 21 Jul 2010
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