In January 2018, the government announced that £55 million from dormant bank and building society accounts will fund financial inclusion initiatives. The programme will be designed jointly by the Department for Digital, Culture, Media and Sport and the Big Lottery Fund, working closely with HM Treasury, the Department for Work and Pensions and the Financial Conduct Authority.
This statement signals the beginning of a further engagement phase, which will inform the design of the programme. Government will then issue policy directions to the Big Lottery Fund, setting out what should be taken into account in determining the use of the funds and the purposes for which the money can be distributed. This is in line with the Dormant Bank And Building Society Accounts Act 2008.
The statement sets out the following:
- The problem the programme aims to solve - to increase the use of fair, affordable and appropriate financial products and services that boost savings, increase protection against shocks, smooth incomes and increase access to and use of fair, affordable and appropriate credit.
- How to approach solving this - the programme will build on existing work, will respond directly to the needs of the people these products and services seek to serve, and will look to increase investment in current and emerging product and service providers.
- How the programme will be developed - over the next four months a user-centred design process will be used to determine the focus of the programme, which will include substantial cross sector engagement.
This statement has been published jointly by the Department for Digital, Culture, Media and Sport and the Big Lottery Fund.
To take part in the engagement phase of the programme, please visit Big Lottery Fund’s website.