The UK government is unlocking £76 million in “dormant capital” to support the most vulnerable people in society.

The funds, which come from financial accounts that have been left untouched for long periods, will be unlocked by the Dormant Assets Scheme.

The government said the assets will subsequently be distributed as no-interest loans to 69,000 people struggling with their finances.

Funds will be distributed via a £45 million grant distributed by Fair4All Finance, and hundreds of charities and social enterprises which will receive support from a pot of £31 million, distributed by social investors Access and Big Society Capital.

Stuart Andrew, minister of the department for digital, culture, media and sport commented: “The public consultation on dormant assets funding provided people with the opportunity to name how money that will be unlocked should be spent, and I’m delighted to announce our plans to introduce a community wealth fund as a new cause.”

He said that the creation of a community wealth fund will give local residents in some of the more deprived areas of the UK the “power to improve where they live” and invest in what’s important to them.

Reflecting on how the funds came to fruition, Diana Johnson MP for Kingston-upon-Hull North and Labour co-chair of the APPG said: “The creation of community wealth funds through the expanded dormant assets scheme is a big win in our journey towards securing long term funding for our country’s most ‘left behind’ neighbourhoods, such as those in my constituency of Kingston-upon-Hull North."

Johnson added: “I am extremely grateful to colleagues from the House of Lords and in the Commons who have supported us with this cause and look forward to the consultation on the establishment of the funds.”

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