New Plans For Dormant Funds

Gordon Brown recently announced that the Government intended to use the money in dormant Building Society accounts to build youth centres so that young people have a place to go.  

However, the Building Society Association claims that the money belongs to its members, not the government, and so it should remain on its balance sheets.  The Prime Minister also revealed plans to double the number of new eco-towns that will be built, with low or zero carbon homes.  

He also detailed his plans to spend £8billion on affordable and social housing and is calling for all housing associations and councils to support shared equity for first time buyers, but to help build more homes to rent and to help cut the current levels of overcrowding.  

Our view

We agree with the Building Society Association.  This is tantamount to theft.  It is not the Government’s money to decide what to do with it.  Likewise though, it is not the Societies.  

Given this age of computers and records, we see no reason for a full tracing service to be put in motion and that money that cannot be linked to an owner (or family member) should be loaned to the Government interest free.  With the security of repayment should the owner come forward.  

We suggest also a public record of dormant funds with the onus of proof on the family member that comes forward to prove a valid claim.  Why is there no public record we ask? 

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