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The Dormant Assets Bill - Clause 1
06 December 2021
Lead MP
John Glen
Debate Type
Bill Debate
Tags
No tags
Other Contributors: 13
At a Glance
John Glen raised concerns about the dormant assets bill - clause 1 in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Over the past decade, the dormant assets scheme has released more than £800 million to tackle systemic social challenges and support communities. This Bill aims to unlock an additional £880 million by expanding the range of eligible asset classes beyond just bank or building society accounts to include insurance, pensions, investment, and securities. The Bill will also introduce a new power for the Treasury to designate additional authorised reclaim funds in future, ensuring flexibility to expand the scheme. It maintains four core principles: voluntary participation, reunification first, full restitution, and the additionality principle. Furthermore, it proposes aligning distribution rules with devolved Administrations and requires periodic reviews of the scheme’s operation.
Jim Shannon
DUP
Strangford
Asked about how local communities can feel part of this project and gain advantage from dormant bank accounts, suggesting a need for inclusivity in the scheme.
Expressed concern that expanding the amount of money and number of areas could swamp local economies, advocating for broadening the scope towards which the scheme can work to avoid overburdening certain regions.
Kevin Hollinrake
Con
Thirsk and Malton
Inquired about urban regeneration funding through the Charities Act 2011, clarifying if distributions can go to regional mutual banks. Suggested that the Bill should facilitate quicker moves towards funding these regional mutuals.
Rachael Maskell
Lab Co-op
York Central
The amendment aims to expand the reclaim fund to include various types of dormant assets, such as pensions. This is necessary due to the significant challenges faced by charities and mutual aid groups during the pandemic. Labour supports this expansion but urges the Government to set a timeline for its implementation.
Danny Kruger
Reform
East Wiltshire
Intervened by asking whether the hon. Lady acknowledges that the Government put more than £150 million into the charity sector last year, and if she thinks this was welcome, not enough or too much.
Julian Knight
Con
Solihull
Supports the Bill to widen funding distribution in England as it has cross-party support. Highlights positive impacts of the scheme on communities and charities, providing £60,000 to 'Ordinary Magic' for mental health support in schools. Emphasises the disparity between devolved Administrations and England’s more restrictive funding rules.
John Nicolson
SNP
Nairn, Highlands and Isles
Welcomes the Bill's expansion of dormant assets scheme to £880 million. Supports changes in distribution flexibility for England but calls for more detail on costs and impact assessments as requested by Baroness Barker. Suggests broader consultation beyond just the National Lottery Community Fund.
Rushanara Ali
Lab
Bethnal Green and Stepney
Ms. Ali is concerned about potential power grabs by Ministers to allocate dormant assets funding to their favoured causes, advocating for proper accountability and scrutiny in the allocation process. She highlights the achievements of organisations like Big Society Capital and Youth Futures Foundation, which have distributed funds effectively since 2019. Ms. Ali warns against political favouritism in funding decisions and emphasises the importance of cross-party consensus on supporting community organisations and charities.
Gareth Davies
Con
Grantham and Bourne
The Bill will unlock funding to support the UK social investment sector. Emphasises the need for Big Society Capital to have more freedom in investing across different types of businesses, highlighting its financial track record over eight years with six losses.
Danny Kruger
Reform
East Wiltshire
Pays tribute to the success of mobilising £8 billion in private money for social investment. Supports initiatives like small regional banks lending to family businesses and community foundations as objects for significant capital injections.
Kieran Mullan
Con
Bexhill and Battle
Welcomes the legislation but suggests retaining some focus on geographical and deprivation-linked spending to support levelling up. Supports a community wealth fund for deprived neighbourhoods.
Supports the creation of a community wealth fund focused on the 225 most deprived or left-behind neighbourhoods, aiming to repair social fabric and build sustainable prosperity in these areas. Advocates for a relational approach over a transactional one.
Nigel Huddleston
Con
Droitwich and Evesham
The speaker thanked MPs for their contributions, highlighting the support across the House for ensuring the continued success of the dormant assets funding scheme. He addressed points raised during the debate, emphasising that clause 29 enables a public consultation on the social or environmental purposes of the funds. The Government plans to launch a 12-week consultation post-Royal Assent, aiming to ensure broad inclusivity in discussions about future causes that could benefit from the funding.
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