Wilson seeks your views on Dormant Accounts Scheme

Finance Minister Sammy Wilson today published a consultation paper on the establishment of local spending priorities for the dormant accounts scheme.

A ‘dormant account’ is a bank or building society account which a customer has not asked about, put money into or taken money out for at least 15 years. It is estimated that there will be in the region of £10million - £20million available in the first year of the scheme with an anticipated several hundred thousand pounds available each year thereafter.

Encouraging a wide range of responses, Mr Wilson said the consultation’s aim is to establish spending priorities to specifically address the needs of the people of Northern Ireland.

The Minister said: “The Dormant Bank and Building Society Accounts Scheme presents us with a real opportunity. It represents a new and innovative concept for the setting of local priorities for distribution of funds currently locked in dormant bank and building society accounts. It will benefit the community under the broad heading of social and environmental purposes, while ensuring that the right of the account holders to reclaim money remains protected.

“A particular issue in Northern Ireland since the inception of the National Lottery has been the ethical difficulties that some groups have had with seeking access to funds generated by gambling. One of the questions being asked in the consultation exercise is how best we could accommodate such organisations.”

The distribution of the surplus assets from the scheme is expected to commence during 2010.

The consultation will last 12 weeks until Thursday 29 October 2009.

Notes to Editors:

1. In November 2007, HM Treasury introduced a draft Bill to the Houses of Parliament, which sets out the provisions for establishing a UK Dormant Accounts Scheme. The Bill received Royal Assent on 26 November 2008. The Bill provides a mechanism for dormant bank and building society accounts to be reinvested back into society across the UK for social and environmental purposes, whilst still maintaining the rights of customers to reclaim their assets at any time.

2. Under the terms of the legislation, the Executive may set its own priorities for spend in Northern Ireland under the broad heading of social and environmental purposes.

3. Whilst it is unclear how much money is available, an allocation of available funds will be earmarked specifically for Northern Ireland. It is likely to be in the region of £10-20 million in the first year with estimates of the additional allocations to be around several hundreds of thousands per year thereafter. For this reason, setting the priorities and structuring the distribution of funds will require careful consideration. Obviously the priorities for Northern Ireland will need to reflect the level of resources available.

4. There are two ways to trace whether you have any money in a forgotten account – You can do it online or send the forms by post. www.mylostaccount.org.uk the website which brings together BBA, BSA and NS&I and enables you to trace a dormant and lost account across banks, building societies and NS&I on completion of a single online application form.

5. Copies of the consultation paper are available on the DFP website:http://www.dfpni.gov.uk/consultation-zone.htm . Hard copies can also be provided on request by contacting Supply Division on 028 91 277656.

6. Written responses should be sent by Thursday 29 October 2009 to:

Email responses may be sent by Thursday 29 October 2009 to: dormantaccounts@dfpni.gov.uk.

7. Media enquiries only to DFP Communications Office on 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.