Dormant Assets Scheme announces record £370m distribution to good causes

The UK’s Dormant Assets Scheme is to release a record £370 million for good causes after Reclaim Fund Ltd (RFL) approved its largest-ever distribution to The National Lottery Community Fund.

The payment, announced in RFL’s Annual Report and Accounts for 2025/26, takes the total amount committed to good causes through the Scheme since its launch to more than £1.6 billion.

Reclaim Fund Ltd (RFL) said the increased distribution follows a comprehensive review of how it manages its capital and reserves. The revised approach uses a risk-based assessment to determine how much money the organisation needs to retain to meet future customer reclaims and remain resilient in the face of severe but plausible financial shocks.

Money held above the level needed to meet those requirements can then be released for good causes.

The change is intended to increase the amount flowing from dormant assets to communities and charities while maintaining the Scheme’s fundamental safeguard: people can still reclaim money that belongs to them at any time through their financial provider.

Since the Scheme was established, £208 million has been returned to account holders, with 243,000 successful reclaims recorded.

The year also saw the Scheme expand into the investment and wealth management sector, potentially opening up a further source of dormant assets for good causes.

Janus Henderson, Jupiter, J.P. Morgan and Schroders became the first four firms from the sector to participate, following work between RFL, the Government, the Financial Conduct Authority and the Investment Association.

The expansion comes as the Dormant Assets Scheme continues to broaden its reach across the financial services industry, with dormant funds ultimately providing a significant source of long-term funding for good causes across the UK.

For the charity sector, the latest distribution represents a significant injection of funding at a time when many organisations continue to face rising demand for their services alongside pressure on their income.

Lawrence M. Weiss, Chair of Reclaim Fund Ltd, said: “After 15 years of operation, the Scheme continues to grow in reach and impact. We are proud to have enabled more than £1.6 billion to be committed for good causes and to welcome four trailblazing Investment and Wealth Management firms. Our focus remains on responsible growth, robust governance and helping more eligible firms participate.”

Adrian Smith OBE, Chief Executive of Reclaim Fund Ltd, said: “This has been an exceptional year for RFL and for the Dormant Assets Scheme. Our significant release of £370 million reflects rigorous work to strengthen our reserving approach, while safeguarding dormant asset owners’ right to reclaim their money. Alongside the opening of the Investment and Wealth Management sector, it demonstrates what can be achieved through strong partnership between Business and Government.”

The funding approved for distribution will support initiatives across the UK through The National Lottery Community Fund, including the recently announced Every Child Can programme in England. Backed by dormant assets funding, the programme aims to improve opportunities for children and young people by investing in earlier intervention and long-term support, helping more young people to thrive regardless of their circumstances.

The Annual Report also showcases examples of how dormant assets funding is already making a difference in communities across the UK. Featured case studies include Nuneaton Signs, a social enterprise that increased production capacity by 144% after receiving £150,000 in support; Hydra Arts, which received £82,404 through Young Start for a creative project involving young people in Scotland and Canada; and Miss Macaroon, one of eight frontline organisations supported through Youth Futures Foundation’s £2 million Evidence into Action programme.

• Reclaim Fund Ltd announces a record distribution of £370 million through the Dormant Assets Scheme, the largest in its 15-year history.

• The total committed for good causes since the Scheme’s inception exceeds £1.6 billion, supporting various initiatives across the UK.

• The Scheme now includes the Investment and Wealth Management sector with firms like Janus Henderson and J.P. Morgan participating for the first time.

• The funding will back programs such as Every Child Can, aimed at improving opportunities for children and young people in England.

• The report highlights success stories, including significant support provided to community projects like Nuneaton Signs and Hydra Arts.