The Dormant Assets Scheme and Reclaim Fund: how to get back money in a dormant account

If an account you hold has sat unused for years, the money in it has not gone anywhere. It is still yours, and you can reclaim it at any time, even after your bank has moved the balance into the Dormant Assets Scheme. That scheme, also called the Unclaimed Assets Scheme, exists so that money nobody is using can be put to work for the community while your right to claim it back is protected¹.

The scheme is run by a not-for-profit reclaim fund that is authorised and regulated by the Financial Conduct Authority³. Banks and building societies that take part transfer the balances of dormant accounts to it, and it holds back enough to pay customers who come forward later⁴.

The law behind it is the Dormant Bank and Building Society Accounts Act 2008, which banks and building societies name when they explain their participation¹. The Dormant Assets Act 2022 then extended the scheme's reach and set the rules for how an authorised reclaim fund may accept transfers².

What the Dormant Assets Scheme is

The Dormant Assets Scheme is the arrangement that lets money in dormant accounts be distributed for the benefit of the community while protecting customers' rights to reclaim their money⁵. An account is dormant when it has been inactive for a long period and the provider has not been able to trace the customer. The provider then transfers the balance into the scheme rather than leaving it sitting untouched.

The scheme is administered by a not-for-profit reclaim fund¹. Its statutory purpose is to enable an authorised reclaim fund, from time to time, to release funds derived from transfers to it for distribution in accordance with Part 2 of the 2008 Act, which covers distribution of dormant assets money for meeting expenditure with a social or environmental purpose, while ensuring that the reclaim fund is able to meet its obligations as they arise². In plain terms: money that nobody is using goes to good causes, but the fund keeps enough back to pay anyone who later asks for their money.

The scheme is not a windfall for the banks. It is a transfer of money that has been sitting idle, with the customer's right to reclaim it preserved. Several providers describe it as the government's Dormant Assets Scheme in their customer information³.

Reclaim Fund: the body that runs the scheme

The reclaim fund is a not-for-profit body which is authorised and regulated by the Financial Conduct Authority³. It is not a bank, it does not hold customer accounts, and you cannot open an account with it. Its role is to receive dormant balances from participating institutions, hold the reserve needed to meet reclaims, and release the surplus for social and environmental purposes.

The fund's legal form is set by the 2008 Act. It must be a company incorporated under the Companies Act 2006 with restricted purposes, meaning its company objects are limited to the scheme's aims rather than ordinary commercial activity¹¹.

The Dormant Assets Act 2022 sets a condition on what the fund may accept. An authorised reclaim fund may only accept transfers of any description from an institution if the reclaim fund has made satisfactory contractual or other arrangements with the institution, including steps for reuniting assets with their owners⁶. That is the legal hook that keeps the reclaim route open: the fund cannot take the money unless arrangements are in place to give it back.

The 2022 Act also deals with data. Nothing in it, or in the 2008 Act, requires or authorises a disclosure of information that would contravene data protection legislation, and no obligation as to secrecy prevents a participating institution giving the reclaim fund the information it needs to plan for or deal with repayment claims². The Act also states that the matters within the scope of a review do not include the regulation by the Financial Conduct Authority of an authorised reclaim fund or any other institution².

The Dormant Bank and Building Society Accounts Act and what it covers

The Dormant Bank and Building Society Accounts Act 2008 is the law that created the scheme. Banks and building societies name it directly when they explain their participation: the Cambridge Building Society says it participates in the Dormant Assets Scheme, also known as the Unclaimed Assets Scheme, established under the Dormant Bank and Building Society Accounts Act 2008¹. Halifax, Barclays, The Co-operative Bank, AIB (NI) and Kent Reliance all describe their involvement in the same terms⁴.

The 2022 Act built on that foundation. It is cited as the Dormant Assets Act 2022 and is Chapter 5 of the 2022 session². It widened the scheme beyond bank and building society accounts and set out the conditions under which an authorised reclaim fund may accept transfers⁶.

What the scheme covers in practice is the balance in a dormant account, not the account itself. When a provider transfers a balance, the account relationship ends for the provider's purposes, but the customer's entitlement to the money does not. The Cambridge Building Society puts it simply: if we transfer the money in your account to RFL, you can still reclaim it¹.

Money in a dormant account can still be reclaimed

This is the point most people want confirmed, and the answer is the same across every provider and guidance body: the money remains yours. Under the terms of the Unclaimed Assets Scheme, you have the right to reclaim your money at any time⁷. first direct says the same: yes, you can reclaim your money from the government's Unclaimed Assets Scheme at any time³. Age UK's guidance is that the money in an inactive account is still yours and you're entitled to claim it at any time⁸.

The purpose of the scheme is to allow money in dormant accounts, in other words money in accounts that have been inactive, to be distributed for the benefit of the community while protecting customers' rights to reclaim their money⁵. That dual purpose is written into the legislation, not just the marketing.

How long a provider waits before transferring a balance varies. first direct says it will move the money into the government's Dormant Assets Scheme after 15 years³. Moneyfarm's terms refer to no activity on an account for six years and being unable to trace the customer before balances are transferred to a registered charity of its choice¹⁰. The trigger is set by each provider's own terms, so the period is not uniform across the market.

How to trace and reclaim a dormant account

Start with the free tracing service. The easiest way to retrace lost or dormant bank and savings accounts is to use the mylostaccount.org.uk service, run by the British Bankers' Association, the Building Societies Association and National Savings and Investments⁹. It covers banks, building societies and NS&I in one search.

Some providers run their own tracing route as well. Birmingham Midshires, for example, asks customers to send a complete unclaimed account application form, or to visit mylostaccount.org.uk and complete the search form¹⁴. AIB (NI) asks customers to complete a Dormant Account Claim Form and bring it to their nearest branch or business centre with identification and an old statement, passbook or other supporting documentation¹⁵.

The process in order:

1. Search mylostaccount.org.uk, or the provider's own tracing service, to find the account⁹.
2. Complete the provider's claim form, which may be a Dormant Account Claim Form or an unclaimed account application form¹⁵.
3. Provide identification and supporting documents, such as an old statement or passbook¹⁵.
4. If you are claiming for someone who has died, add a Death Certificate or Grant of Probate¹⁵.
5. Submit the claim to the provider, not to Reclaim Fund¹⁵.

Reclaiming an account belonging to someone who has died

You can reclaim a dormant account belonging to someone who has died, but you will need to prove your authority to deal with the estate. AIB (NI) sets out the requirement directly: if reclaiming on behalf of a deceased individual, a Death Certificate or Grant of Probate is needed alongside the completed claim form, identification and supporting documentation¹⁵.

The rules on who can deal with an estate differ across the UK. In Scotland, Social Security Scotland's guidance on recovering Funeral Support Payments from an estate notes that recovery applies if the person who died was aged 18 or over and had money or assets in their estate¹⁶. The same guidance gives a worked example: if the person who died had £200 in their bank account that was available to be used for funeral costs and accessible, that amount is deducted from the payment and not counted for recovery¹⁶.

Funeral payments themselves can be recovered from an estate. In England, Wales and Northern Ireland, the person making the claim does not need to pay the money back, but if the deceased person left sufficient assets such as money or property in their estate, the DWP is entitled to recover the payment from there and will usually attempt to do so¹⁷. In Scotland, the equivalent Funeral Support Payment does not have to be repaid by the claimant, but it can be recovered from the estate of the person who died, before any inheritance is paid out¹⁸. Social Security Scotland states that if the person who died had assets, once these become available they may need to be used to repay any Funeral Support Payments before any inheritance is paid¹⁸.

This matters for a dormant account because the balance forms part of the estate. If a funeral payment was made, the estate may need to settle that before anything is distributed to beneficiaries. Separately, in Northern Ireland, unpaid pension scheme contributions may be reclaimable from the Department for the Economy, which makes payments from the National Insurance Fund¹⁹.

Where to get help

Tracing a dormant account is free, and the main route is mylostaccount.org.uk⁹. Age UK publishes guidance on tracing lost money for older people and their families⁸. If a provider is slow to respond or refuses a claim you believe is valid, the usual complaint route applies: complain to the provider first, then take the matter to the Financial Ombudsman Service if it is not resolved.

If you are dealing with an estate, the practical steps are the same as any other account: establish who has authority to act, gather the documents the provider asks for, and submit the claim. Powers of attorney and deputyship arrangements do not survive death, so a grant of probate or confirmation is normally what a provider will ask to see¹⁵.

For a broader look at how dormant accounts work and how to trace money across different kinds of account, see Dormant bank accounts and reclaiming lost money. If you need to complain formally, Writing an effective complaint letter or email sets out how to do it, and Free consumer advice when a dispute with a firm stalls explains where to turn next.