The government has reconfirmed the release of £87.5 million from the Dormant Assets Scheme to support community organisations struggling to access mainstream finance. This includes £12.5 million for organisations that support improved youth outcomes.

Over the next four years, thousands of trading charities, social enterprises, co-operatives, and other community enterprises will benefit from the scheme.

Dormant assets are financial assets left untouched for long periods. Led by the financial services industry and backed by the government, the Dormant Assets Scheme aims to reunite people with these lost funds. Where this is not possible, money is transferred to the Dormant Assets Scheme to be distributed to important social and environmental initiatives.

The £87.5 million investment from Dormant Assets will help charities, co-operatives and social enterprises – particularly smaller organisations based in more deprived areas or working with underserved communities – to access the finance they need to grow or diversify their business models.

Partners from across social investment and social enterprise sectors, with backing from civil society, philanthropy, and mainstream businesses, have developed the Community Enterprise Growth Plan which sets out proposals for deploying Dormant Assets via social investment. A three-pronged approach will deliver tailored enterprise support, increase the availability of affordable and flexible loans, and build a robust and equitable social investment market.

Seb Elsworth, Chief Executive of Access – The Foundation for Social Investment, said: “The support from the Dormant Asset Scheme will create jobs, boost growth, and address inequalities by unlocking new investment in organisations that are uniquely positioned to transform our communities. This means that vital community organisations, particularly those in more deprived areas, can access the support and finance they need to grow.

By providing these mission-led businesses with access to finance and the right conditions to succeed, we can strengthen the economy across the country. This will also empower communities to tackle social issues that hinder productivity and growth. Investing in this way multiplies impact by attracting millions more from private and philanthropic sources, helping communities thrive.”

“The specific focus on youth organisations will enhance their long-term resilience and expand their impact.  Developing resilient business models will enable these organisations to reach more young people, scale their impact in a way that lasts, and drive economic growth.”

Social investment has already enabled many organisations to grow and serve more people. Recent figures from Better Society Capital estimate the amount invested in UK charities and social enterprises has grown twelve-fold from £830 million in 2011 to £10 billion in 2023, in large part due to the pioneering investment from Dormant Assets.

Most investments from the Dormant Assets Scheme facilitated by Access go to areas facing high levels of deprivation, meaning that more funds reach communities dealing with health inequalities, unemployment, poverty, and crime. Nearly two-thirds of the funds to date have been channelled to organisations in deprived areas (IMD 1-4), and over one-third went to those in the most deprived communities (IMD 1-2).

Examples range from a social enterprise which intercepts wasted food to provide affordable meals in Sheffield, a Southend-based enterprise that has transformed a disused unit in a shopping centre into a vibrant community hub and a Manchester-based arts programme helping neurodivergent young people access careers in the creative sectors.