£90 million from dormant accounts to be used to tackle racial inequality
Theresa May has pledged to use £90 million from dormant accounts, to help deal with racial inequality. The unclaimed funds will be sourced from accounts which have been inactive for at least 15 years. The cash will put towards the inequalities in youth unemployment and helping underprivileged young people gain jobs.
The action has been taken after the Race Disparity Audit was released in October 2017. The study revealed that 16 to 24 years-olds from ethnic minority groups, were twice as likely to be unemployed as their white peers.
Theresa May said, “youth unemployment blights communities and wastes talent and potential – and too many young people from deprived and ethnic minority backgrounds face barriers preventing them from entering the world of work.”
The added funding will present opportunities for young people to work with educators and youth and community organisations. The organisations will be able to assess their skills and explain the best ways that they can help their local communities and businesses.
The government first announced their plans to use the assets from dormant accounts in January 2018. It was reported that £135 million from dormant accounts would be used to combat homelessness. This was also when we initially heard of the plans to use dormant assets to help disadvantaged young people into employment.
Why a backlash?
A social media reaction has focused on the negative viewpoint of using assets from individuals bank accounts – despite being dormant. One user on Twitter explained that,
“it’s their money, you can’t just take it,”
whilst another said that the whole thing was,
The government are only able to utilise assets that have been untouched for at least 15 years. Whilst the relevant financial institutions will have made a considerable effort to have traced the owner. Due to a change of address, or adopting a new name, some people manage to slip through the net and are never traced.
But there is good news in the legislation of the Dormant Bank and Building Society Accounts Act 2008. If any owner of assets comes forward and can prove the money is theirs, they can be reunited with their cash. Even if it has already been paid out for charitable purposes. The Reclaim Fund is regulated to maintain a reserve limit, in the case of owners coming forward.
Where we come in
If you would like to determine if you have any unclaimed money from a dormant account owed to you, head to monimine.com. Using our nationally recognised tracing expertise, we can help you unearth any hidden assets, for FREE.
Josh Cousens – Monimine.
Image source – Flickr