Ed Balls publishes document on unclaimed asset scheme

The Economic Secretary, Ed Balls, today launched a consultation document on proposals to introduce an unclaimed assets scheme in the UK, in order to allow money in dormant bank and building society accounts to be reinvested in society, without taking away consumers' rights to reclaim their money.

As announced in the 2005 Pre-Budget Report, the Government has been working with the industry to design a scheme on this basis. The proposals are made with the support of the British Bankers'Association and Building Societies Association.

The consultation document outlines details of the scheme, including the banks and building societies' proposed changes to the Banking Code and proposals for legislation.

It is proposed that the scheme will apply to bank accounts where there has been no customer-initiated activity for at least 15 years.

On this basis, the banks and building societies estimate that a stock of several hundred million pounds may currently lie unclaimed. They also estimate that a further flow of perhaps tens of millions of pounds may become available each year. These estimates are before the impact of a comprehensive reuniting exercise that banks and building societies will launch in advance of the scheme, building on their existing arrangements to help customers track down their accounts.

For consumers, the process for reclaiming money will not change, they simply need to visit their bank or building society to reclaim which will repay them as now.

A further Government consultation document will be published later in the Spring to consider the most effective means of distributing the available assets.

Ed Balls said: "I am delighted to announce the publication of this consultation document on a UK unclaimed assets scheme. This is a unique opportunity to provide for worthwhile reinvestment in youth services, financial inclusion and capability, while balancing the financial interests of consumers. The document builds on the excellent cooperation with the banks and building societies. We welcome the ongoing commitment from the sector to working together to make the scheme a success."