Policy background Changing the model for distributing dormant assets funding in England
The 2008 Act provides that all dormant assets money must be used to fund initiatives which have a social or environmental purpose. 5
	Funds are apportioned by TNLCF to each nation in the United Kingdom according to the Distribution of Dormant Account Money (Apportionment) Order 2011 (SI 2011/1799), based on the Barnett formula.
	The 2008 Act restricted funding allocations in England further to youth, financial inclusion, and social investment. The other three nations do not have restrictions in primary legislation; instead, the relevant ministers have the power to set the particular purposes and recipients of their allocations through secondary legislation.
	Within the boundaries of the 2008 Act and any such secondary legislation, each nation has powers to issue broad policy directions to TNLCF on how to allocate their portion of the funding. The Secretary of State has the power to issue policy directions to TNLCF specifying the purposes for which the English portion may be distributed. To date, TNLCF has channelled funding in England through four specialist dormant assets-funded organisations, overseen by an independent Oversight Trust. 6
	Following policy directions from the Secretary of State, TNLCF has created funding agreements with each organisation in order to distribute funds, which are then drawn down by the organisations on the basis of need. There is no set time limit to these funds, which enables these independent organisations to take a long-term view of the challenges they exist to tackle.
	In response to calls from the public to review these causes, the Act amends the approach to restrictions in England to allow the Government to respond to public feedback and evolving social and environmental needs by setting the causes through secondary legislation, which is subject to public consultation and parliamentary approval.
	The first consultation launched under this Act must include youth, financial inclusion, and social investment as options to consider. It must also consult on an option to distribute funds to community wealth funds: a fund that provides long-term financial support to communities for the provision of social infrastructure.
	No further changes, other than consequential amendments, have been made to Part 2 of the 2008 Act.