May 25, 2010
Dormant bank accounts disappoint
When the government announced they were going to redistribute to good causes all the monies from bank and building society accounts that people had forgotten about, the estimates being bandied about for Scotland’s share were in the region of £40million -and that was just in the first year. It has taken much longer than expected to work out the actual figures and by the looks of it, much of that time was spent by the banks trying to work out how much they could hold onto. Disappointingly little is coming our way
The Dormant Bank and Building Society Accounts (Scotland) Order 2010 is being laid with the Parliament this week.
Scotland’s estimated share of the DBA funds is estimated to be around £12 million in the first year, £12 million in the second year and £1.5 million year-on- year thereafter. These sums are much lower than originally envisaged due to the scheme being a voluntary scheme with the banks/building societies and funds being held back to meet any future claims from the general public who have recently discovered that they have monies in a lost account.
Article 3 provides for a distribution of dormant account money to third sector organisations for meeting expenditure on or connected with services, facilities or opportunities which promote strong, resilient and supportive communities. This is a direct link to Outcome 11 of the Scottish Government’s 15 National Outcomes – “We have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others”.
If the Order is passed by the Scottish Parliament, the Scottish Ministers intend to instruct BIG, under Schedule 3 to the Act, to prepare and adopt a strategic plan for Scotland . The strategic plan will be a statement of the BIG’s policies for the distribution of dormant account money for meeting Scottish expenditure. The Scottish Ministers will also use powers under section 22 of the Act to set out policy directions to guide BIG in the development of the plan. It is expected that BIG will then hold a consultation on the draft Strategic Plan. Once finalised, the draft Plan has to be agreed with the Scottish Ministers, who also have to lay it before the Scottish Parliament.
Extract The Dormant Bank and Building Society Accounts (Scotland) Order 2010
Distribution of money for meeting Scottish expenditure
1.—(1) A distribution of dormant account money for meeting Scottish expenditure may be made only—
(a) to third sector organisations; and
(b) for meeting expenditure on or connected with the provision of services, facilities or opportunities which promote any strong, resilient and supportive community.
(2) For the purposes of this Order, a “strong, resilient and supportive community” is a community—
(a) whose members—
(i) are safe, healthy and able to contribute to the social, environmental and economic well-being of the community; and
(ii) have access to high quality services and economic opportunities; and
(b) which is able to withstand or recover from difficult social, environmental or economic conditions.