Over half a billion dollars from dormant accounts to help those in need

Over half a billion dollars from dormant accounts to help those in need
Photo credit: Getty.

Hundreds of millions of pounds - over half a billion $NZD - in dormant British accounts will be put to use helping those in need. 

Dormant accounts are defined as those that have been inactive for over 15 years and the account holders cannot be contacted by the financial institution involved. 

According to AAP, the largest portion of the funds from dormant accounts will go to housing initiatives for homeless and vulnerable people, with social enterprises and local charities receiving up to £135 million (NZ$280 million) across England. 

Conservative MP Tracey Crouch said on Thursday: "By unlocking millions of pounds from dormant accounts for a range of good causes, we can make a real difference to lives and communities across the country."

"This is part of the government's commitment to building a fairer society and tackling the social injustices that hold people back from achieving their full potential."

Over £90 million (NZ$200 million) will be used to help disadvantaged youngsters into jobs, and a further £55 million (NZ$100 million) is to go on "financial inclusion initiatives" such as tackling problem debt.

Up to £50 million (NZ$100 million) will also be distributed in Scotland, Wales and Northern Ireland.

Since the scheme to utilise dormant accounts was introduced in 2008, over £1.4 billion (NZ$2 billion) has been identified, and over £496 million (NZ$700 million) has been gifted to good causes.