Money in dead bank accounts should benefit the community

All banks and building societies should be covered by a new scheme to give dormant accounts to good causes, the Northern Ireland Council for Voluntary Action said today.

In its submission to the Treasury on unclaimed assets, NICVA said the local Executive and Assembly should decide the overall priorities for spending the money in Northern Ireland.

It was commenting on government proposals for an estimated £400–500 million that has been sitting for 15 years in bank and building society accounts forgotten by owners. Northern Ireland’s share could be £14-17 million.

Seamus McAleavey, chief executive of NICVA said:

"Our first priority is to have a campaign to re-unite people with their money but it is wrong that banks and building societies should make a profit from these dormant funds. They should be used to benefit the community generally.

"The scheme should be compulsory for all banks and building societies. It is daft for government to suggest that some financial institutions might hand over money for good causes but others could hold on to it."

The voluntary and community sector umbrella body added that there should be public consultation on the priorities for spending the money eg fighting poverty, helping children and young people, tackling health inequalities or creating a social investment bank.

Big Lottery Fund should distribute money

Northern Ireland’s new administration should decide general priorities but Ministers should not be allowed to decide or direct the actual distribution of money. NICVA suggests instead that this could be done by the Big Lottery Fund.

Mr McAleavey commented:

"The power for ministers to decide on specific priority spending erodes the independence of funding.

"In addition we want to ensure that spending from dormant accounts is over and above normal government spending.

There could be a conflict of interest if Ministers can plug gaps in their own funding by allocating money from unclaimed assets"