Since 2019, the Dormant Assets Alternative Scheme has provided building societies with a unique  opportunity to unlock otherwise dormant funds for the benefit of their local communities, while  maintaining the account owner’s right to reclaim their assets at any point. As the operator of the Scheme, Reclaim Fund Ltd (RFL) has welcomed ten building societies to the Alternative Scheme, with many more in the process of joining. Their collective efforts have unlocked over £2.5 million for their community foundations, ensuring that funds which might otherwise have remained dormant are now driving meaningful local impact. 

How the Alternative Scheme Works
 

The Alternative Scheme was designed specifically for building societies and smaller banks with balance sheets valued up to £7 billion, giving them a voluntary route to transfer dormant customer balances while retaining full control over where the funds are distributed. Unlike the wider Dormant Assets Scheme, which channels funds to causes across the UK through the National Lottery Community Fund, the Alternative Scheme allows firms to direct their eligible dormant assets to local community foundations. This ensures that the money stays close to home, benefiting communities and places that are important to building societies and their members.

Impact to Local Communities
 

In 2019, Newcastle Building Society joined as the first Alternative Scheme participant. Since then,  unlocking dormant funds has allowed them to support hundreds of local charities including through their Community Fund, supporting organisations tackling strategically important issues such as
employability, food poverty, debt management, housing and homeless, and sustainability.

Their recent £1 million donation to the Community Fund was made available through the Scheme, and will help improve lives for people across communities in the North East, Cumbria, and North Yorkshire. 

Andrew Haigh, Chief Executive at Newcastle Building Society, said:

“Using the Dormant Assets Alternative Scheme has enabled us to access a vital source of funds and maximise the support we provide to our communities and strategic partners. The recent contribution to our Community Fund through the Alternative Scheme boosted the endowment to more than £3.5m. It’s one of the most powerful ways we deliver the Society’s purpose to connect our communities with a better financial future and locks in a reliable source of significant income for charities in our regions for generations to come."

Looking Ahead
 

As we join the BSA in celebrating the 250 year anniversary of the sector, it’s particularly significant that building societies have long been rooted in their communities, offering more than just financial services. The Dormant Assets Alternative Scheme has provided a powerful way for societies to extend that
commitment even further, ensuring that forgotten funds are reinvested into the places that need them most.

The potential of the Dormant Assets Alternative Scheme is far from fully realised. There are still eligible building societies that could participate, unlocking further funds that could be directed towards community-driven change.

For those that have yet to join, the message is clear: this is a chance to make meaningful impact, whilst ensuring the rights of your account holders. The joining process is straightforward, and the benefits - both for communities and for the building societies themselves- are significant. 

Next steps
For more information on how to get involved, please contact: dormantassets@reclaimfund.co.uk