The UK government is facing a fierce backlash from the charity sector after it emerged that ministers have quietly diverted a staggering £25 million away from community projects and into the Department for Education's budget.
The funds were taken from the Dormant Assets scheme, a flagship programme designed to reinvest forgotten money from old bank accounts into social and environmental causes across England. This move, described as a 'raid' by furious charity leaders, was confirmed in a recent government response to a consultation, sparking outrage for its lack of transparency.
A Broken Promise to Communities
The decision represents a stark U-turn on previous government commitments. The Dormant Assets Act was specifically expanded with the promise that this 'good cause' money would be channeled into supporting youth services, economic growth in local communities, and social investment. Charities had been led to believe these vital funds were protected for their intended purposes.
Anna Smee, chief executive of the Youth Futures Foundation, one of the organisations set to lose out, did not hold back her criticism. She labelled the move 'a shocking decision' that 'undermines the very essence of the Dormant Assets scheme.'
Ministerial Justification Meets Widespread Criticism
While the government defends the reallocation by stating it will support 'important youth services', the argument has failed to placate the sector. Experts point out that the money is simply being absorbed into the Department for Education's general budget, with no guarantee it will be ring-fenced for the innovative youth and community programmes it was originally destined for.
This incident has raised serious concerns about the government's approach to long-term, evidence-based social investment, with many fearing it sets a dangerous precedent for future raids on funds meant for the most vulnerable in society.
