23 March 2007
Hundreds of millions of pounds held in dormant bank accounts will soon be used to fund local youth services under plans revealed by the Treasury this week.
Ed Balls, the economic secretary to the Treasury, issued a consultation document on March 20 to allow the government to invest 'unclaimed' cash that has idled in bank and building society coffers for more than 15 years.
'Banks and building societies estimate that a stock of several hundred million pounds may currently lie unclaimed,' the consultation document says. Tens of millions of pounds could also be made available annually.
The idea was first floated in Chancellor Gordon Brown's 2005 Pre-Budget Report. Balls has asked for feedback.
Treasury officials have been working with the banking industry to design the scheme, which will allow account holders to claim their money if they reappear later.
Banks and building societies are expected to run a 'comprehensive reuniting exercise' to help customers track down old accounts prior to the policy launch.
PFmar2007
