The government has today released its Dormant Assets Scheme Strategy which sets out its strategic priorities and programmes of work over the next four years.
The money will be targeted at doubly disadvantaged communities – those with high levels of deprivation and low social capital which are therefore most in need of investment in civic and capacity building. This long-awaited decision is something the Community Wealth Fund Alliance (CWFA) has been asking the Government for since launching its campaign in 2017.
The announcement reflects the ongoing, cross-sectoral support for the campaign’s core principles. The Alliance has long advocated for a targeted approach that addresses the needs of doubly disadvantaged neighbourhoods – areas that have historically missed out on their fair share of investment alongside facing the highest levels of deprivation and the weakest social infrastructure.
Predominantly located in housing estates on the outskirts of former industrial towns and cities, as well as in coastal areas, many of these neighbourhoods are found outside small towns and were at risk of missing out on vital investment under previous proposals for the funding.
The CWFA has restated its calls for a 10-year commitment to an equal share of dormant asset funding for the Community Wealth Fund, which reflects the most realistic timeframe for supporting community development approaches in our most deprived communities.
Rachel Rowney, Chief Executive at Local Trust, founding member and secretariat to the Community Wealth Fund Alliance, said:
“We welcome today’s long-awaited announcement. This funding will enable the Community Wealth Fund (CWF) to support the rebuilding of social infrastructure in some of England’s most deprived areas.
“The CWF has led the charge of a cross sectoral Alliance of organisations to use dormant assets to improve the lives of residents in some of the most disadvantaged neighbourhoods across England. We know that giving local residents the means to develop the services and facilities that meet their needs and aspirations can really shift the dial for the communities they live in. The Fund will help build vital social and economic capital and lay the foundations for lasting positive change in these areas.
“Today’s announcement is only the start however, and we await further detail on the CWF’s design in the government’s response to the technical consultation. We look forward to working with the National Lottery Community Fund as they take forward next steps on the delivery of the Community Wealth Fund on behalf of government.”
Initial funding of £87.5 million, between 2024 and 2028 from the expanded Dormant Assets Scheme and an additional £87.5 million confirmed from the National Lottery Community Fund, as the Scheme’s named distributor takes the total funding to £175 million.
The Rt Hon. the Lord Bassam of Brighton, former Shadow Spokesperson (Culture, Media and Sport), said:
“Gordon Brown’s dormant assets scheme recently reached its £1 billion distributed milestone. The new Community Wealth Fund will ensure that it reaches more disadvantaged communities around the country, developing the long-term skills and capacity that underwrites resilience in our neighbourhoods.
“I’m proud to have led Labour peers in opposition in amending the legislation that made this possible and look forward to watching as the fund comes on stream.”
ENDS
For more information or to request an interview, please contact Ben.jackson@localtrust.org.uk
Notes to Editors
About the Community Wealth Fund Alliance
Launched in 2019, the Community Wealth Fund Alliance (CWFA) has led the successful cross-sectoral campaign to ensure that funds from the next wave of dormant assets are committed to rebuilding the social infrastructure of our most deprived communities. A detailed timeline of the campaign can be found here.
The CWFA is a group of more than 800 organisations from across civil society and the public and private sectors. The CWF proposal is supported by leading regional mayors, business leaders from across banking and finance, and more than 50 local and combined authorities. The Alliance envisaged the CWF as an independent fund, designed to provide support and funding over the long term to reinvigorate England’s doubly disadvantaged neighbourhoods.
https://communitywealthfund.org.uk/
About Local Trust, founding member at secretariat to the Community Wealth Fund Alliance
Local Trust is a place-based funder supporting communities to transform and improve their lives and the places in which they live. We believe there is a need to put more power, resources, and decision-making into the hands of communities. We do this by trusting local people. Our aims are to demonstrate the value of long term, unconditional, resident-led funding, and to draw on the learning from our work delivering the Big Local programme to promote a wider transformation in the way policy makers, funders and others engage with communities and place.
About doubly disadvantaged neighbourhoods
In 2018, Local Trust commissioned Oxford Consultants for Social Inclusion to develop the Community Needs Index (CNI). The Index considered spaces and places to meet, community organisations and civic engagement, and transport and digital connectivity to identify areas with low social infrastructure.
The CNI was cross-referenced with the Index of Multiple Deprivation (IMD) to identify places with the highest levels of deprivation and weakest social infrastructure. Residents of these areas experience worse outcomes all major socioeconomic indicators, including educational attainment, job opportunities and health outcomes, compared to equally deprived areas with a base level of social infrastructure.