Millions of pounds have been stripped from the nation’s unused savings accounts in order to fund Big Society Capital, a government initiative designed to provide working capital to deserving community projects and charities.
Part of the Big Society project launched by prime minister David Cameron, the new bank has gathered £600 million from High Street personal and business bank account providers across the UK that have cash lying in accounts that have lain dormant for too long. Any account that was left alone for 15 years or more was subject to being co-opted under the scheme, though consumers who can prove they have a right to the cash can reclaim the cash at any time.
A full two-thirds of the £600 million comes from these appropriated funds. The remaining £200 million was culled from the ‘Big Four’ high street lenders such as the taxpayer-owned RBS. The funds disbursed by Big Society Capital to charities and social enterprises will be repaid from generated income, said Mr Cameron, with the money going to fund social enterprises in addition to charities.
An independent, self-sustaining market is going to aid in building the Big Society, said the prime minister, with the bank working to encourage social enterprises and charities to prove and replicate their business models before becoming eligible for funds to allow wider regional expansion. The Government also has plans to grow Big Society Capital by coming out with savings products as well in the future, as the desperately needed ‘social recovery’ of the UK that the Big Society scheme will provide needs to be supported as much as possible, Mr Cameron added.