No date for dormant funds release

The government should be able to start the process of awarding cash to charities, because the Dormant Bank and Building Society Accounts Act 2008 became law in December last year.

But a contingency fund has to be set up for people who want to reclaim money from old bank or building society accounts before the money can be distributed to charities. It has emerged that additional legislation might be needed to make this happen, which could take many months.

A Financial Services Authority (FSA) consultation on how the fund could work in practice closed last week.

A spokesman for the FSA said: "The timescale for when we will issue our feedback statement cannot be confirmed at the moment."

The Treasury is also consulting on the process. "The government will bring forward further details on how the system will work as soon as possible," a Treasury spokesman said.

Anne Longfield, chief executive of 4Children, said Children's Secretary Ed Balls must reassure youth charities that the scheme is going ahead.

The main concern is that funding for youth centres will be jeopardised, she added.

There is only £30m left in the Myplace fund for new youth centres, so charities want the unclaimed assets money to fund future investments.

Jeremy Glover, chief executive of the Bolton Lads & Girls Club, said the delays were damaging to the Aiming High agenda.

He said: "The longer the delay, the more people get anxious about whether the scheme will actually take place."