Housing associations could share in unclaimed money in dormant bank and building society accounts as part of Government plans to plough these funds into community projects.
A new Treasury paper suggests the organisations that distribute money to charities for the national lottery could run such a redistribution scheme. One of the areas the Government hopes could benefit from the initiative is projects that help tenants access financial services.
The Treasury paper states: "The Government would like to see a proportion of the available unclaimed assets in England used to deliver additional programmes in support of increasing financial capability."
It is estimated that hundreds of millions of pounds are lying in saving accounts unused for at least 15 years. This money could be used to help fund financial inclusion projects, the paper states:
"A small but significant minority are unable to access even the simplest financial services, meaning that they pay more to manage their money, find it harder to plan for the future and cope with financial pressures, and are more vulnerable to financial distress and over-indebtedness."
Launching the consultation, minister for the third sector, Ed Miliband, said there should be an emphasis on using the funds for young people: "Charities, social enterprises, voluntary and community groups all play a vital role in tapping the true potential of this funding to transform the landscape of youth services in this country."
