The Dormant Assets Scheme will be used in part to create community wealth funds, which will be available to charities, voluntary organisations and community groups tackling social problems in their communities.
Dr Clare Mills, Director of Policy and Communications, Charity Finance Group, said:
“Charitable organisations are facing the toughest operating conditions many of us have experienced. When every pound could be spent many times over, in the face of growing demand from the communities we serve, it’s fantastic to have some good news.
“Unlocking additional funds through the Dormant Assets Scheme will mean charitable organisations will be able to invest in their development and provide stability so that they can bring about positive change in their communities. These funds will strengthen community-led decision making and action, and will ensure that support is targeted, reaching the communities and people that need it most.”
Expanding the Dormant Assets Scheme will provide an additional £880 million, following extensive consultation last year.
The government has also said that £31 million will be released immediately to help charitable organisations and social enterprises which are facing rising energy costs and increased demands for support, due to the cost of living crisis. This funding will contribute towards energy saving measures for charity and community buildings.
CFG is a member of the Community Wealth Fund Alliance which brings together nearly 500 organisations from civil society, and the public and private sectors.
Community wealth funds would be used to support community development in communities that experience severe socio-economic challenges and also lack social infrastructure – defined as places and spaces to meet, digital and physical connectivity, and an active and engaged community.
Research by Oxford Consultants for Social Inclusion (OCSI) and Local Trust has identified 225 neighbourhoods with these features, which are perhaps the most ‘left behind’ in England. Outcomes in these areas are markedly worse than in other, equally deprived, areas: unemployment is higher, health is poorer, and educational attainment and participation in higher education are much lower. And Covid-19 has likely exacerbated existing challenges for these neighbourhoods.
‘Left behind’ neighbourhoods have traditionally missed out on funding. They are in urgent need of a funding response that provides targeted investment and supports sustainable, community-led change which can be provided through a community wealth fund supported by dormant assets.
Further reading on dormant assets
Our Five-Point Plan for Government (2020)
CFG policy update for Association for Independent Museums (4 February 2021)
Invitation to respond to dormant assets consultation (6 October 2022)
Waking up dormant assets (3 August 2022)
« Back to all news