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Cameron to launch Big Society plan to raid old bank accounts

Prime minister David Cameron will today launch his Big Society, a plan to pass money in dormant bank accounts to communities to help them fund local projects.

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by Michelle McGagh on Jul 19, 2010 at 07:59

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Cameron to launch Big Society plan to raid old bank accounts

Prime minister David Cameron will today launch his Big Society, a plan to pass money in bank accounts that have not been touched for 15 years, to communities to help them fund local projects.

Cameron will describe his plans as the ‘biggest redistribution of power from elites in Whitehall to the man and woman on the street’ which could see local communities take charge of setting bus timetables to handing out cash incentive to neighbourhoods which hit recycling targets, according to reports.

Four areas have been chosen to pilot the Big Society scheme and will be invited to submit applications to the Big Society Bank. The bank will give out hundreds of millions of pounds of money left in dormant bank accounts to help set out volunteer schemes and improve communities.

‘The Big Society is about a huge culture change, where people, in their everyday lives, in their homes, in their neighbourhoods, in their workplace, don’t always turn to officials, local authorities or central government for answers to the problems they face but instead feel both free and powerful enough to help themselves and their own communities,’ Cameron will say today.

The scheme has come under fire from Labour, with shadow energy secretary Ed Miliband accusing the coalition of using Big Society to cut public services.

‘Cameron’s government is cynically attempting to dignify its cuts agenda by dressing up the withdrawal of support with the language of reinvigorating civic society,’ he said.

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12 comments so far. Why not have your say?

Isn't this just theft of money from people who just happen to have left money in an account for 15 years or more, without touching it?

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I believe that the time limit should rise to at least 25 years. What happens if the owner comes forward after his funds were taken off. It is his/her money after all, whether it was forgotten or not.

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I work for one of the insitutions which is in the running to manage this cash.

There always have been a strict set of Client Money rules laid down by the FSA which deal with this situation, in their CASS rules. As I understand it, any banks being given the mandate to manage these funds will have to give legal undertakings to meet any claim made by investors on these funds.

This article is slightly misleading, as the funds also wont all be 'distributed' but the majority will be managed meaning there will alwaye be enough cash to meet any genuine claims from people who come forward in the future.

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Whatever happened to property rights?

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This is a typical example of a politician seeking plaudits by spending other people's money.

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Anyone know how to find a lost account e.g. something like GiroBank?

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Gerry, there is a free service for finding lost accounts here http://www.mylostaccount.org.uk/. I have used it myself and it is easy to use.

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People own that money, even if they have forgotten about it or die. It belongs to their estate and the government should not have any legal rights to take it until the financial body that holds it has exhausted all avenues in attempting to locate its rightful owner.

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A dormant bank account is one that has not been used for at least 15 years and where the bank has been unable to locate the rightful owner. If the rightful owner ever does come forward they can claim their money back. This is an excellent use for money that would otherwise be wasted and has correct checks in place to make sure nobody loses out.

Oh wait I forgot this is citywire - typical Zanu Lieb-Con socialists stealing our money!!!

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if interested rates are giong to stay low ,the cost of inflation will be eatting away at these forgotten accounts.. i rather see local couummities benefit then the government of banks using these funds to fateen they bloated salaries !

Governement has the choice to use this money to reduce the debt they ownthe country .. so i wud agree it better use to help people at bottom of the ladder in society to keep community projects that benefit the community inthe long term . eg to grow your own vegs on unused land in +around the cities.

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its legal theft

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Mike E

Jul 21, 2010 at 08:40

Legal theft - isn't that simply what tax is all about. At least this money - demonstrably - is not required by the owner.

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