Disadvantaged communities across England to receive bespoke funding pots to improve their areas – and local residents to hold the purse strings

The £175 million Community Wealth Fund is funded by £87.5 million from the Dormant Assets Scheme, with an additional £87.5 million in match funding from the National Lottery.

The funding programme is specifically targeted towards ‘doubly-disadvantaged’ communities across England: communities with the highest level of deprivation and the lowest levels of social infrastructure.

It will be distributed over a long time, with residents in charge of decisions on how to improve their own areas. The intention is to target historically underserved communities, which have, in the past, not had the same access to funding and support as other communities.

The government recently published its first-ever Dormant Assets Scheme Strategy, outlining how the next tranche of Dormant Assets funding will be distributed.

The purpose of the venture is to provide a boost to places and spaces – the ‘social infrastructure’ – where local people meet, build relationships, and take part in everyday activities, and build the skills and capacity of local communities to make decisions about their future. This is with the intention of building community cohesion, reducing inequities and poverty, and bringing residents together.

While the funding comes from the Government’s Dormant Asset Scheme and The National Lottery Community Fund, local decision making is central to the ambition of the scheme. Local people will be empowered to decide how to spend the allocated funding, according to what’s best for their area, and will oversee plans to make their community’s ambitions a reality.

David Knott, Chief Executive of The National Lottery Community Fund, said: “No one knows more than local people about what their community needs – and I know not every community has had the same starting point. At The National Lottery Community Fund, we meet communities where they are and support them to build on their strengths.

“That’s why I’m proud we’re working with DCMS and MHCLG to launch the Community Wealth Fund – a £175 million commitment to put power where it belongs: in the hands of communities themselves. This is about more than funding. It’s about creating the social infrastructure where it’s most needed and backing local people to shape their own future.

“I’m grateful to the communities and sector partners who’ve shared their insight, experience and challenge to help shape this work. We’re determined to do justice to their passion – and to help bring about real, lasting change.”

Minister for Civil Society, Stephanie Peacock said: “The Community Wealth Fund will provide resources needed to help people shape their own futures, break down barriers to opportunity and build safer communities for everyone.

“Launching the Fund marks a significant milestone for the Dormant Assets Scheme which continues to unlock unclaimed money for public good, delivering on our Plan for Change.”

Minister for Devolution, Faith and Communities, Miatta Fahnbulleh, said: “Putting money into the hands of local people and letting them call the shots will help communities transform their areas for the better.

“That is exactly what the Community Wealth Fund is all about – from funding more after-school clubs to helping make safer streets. Alongside The National Lottery Community Fund, we are putting those who know their areas best in charge of shaping their futures as part of our Plan for Change.”

Rachel Rowney, Chief Executive at Local Trust, founding member and secretariat to the Community Wealth Fund Alliance, said: “The announcement is a welcome culmination of the Alliance’s seven-year campaign for the Community Wealth Fund.

“We are pleased that the principles we advocated for, including the importance of working at a hyper-local level, where residents lead decisions over the long-term on how resources are used are central components of the response.

“We know this has the potential to shift the dial in the most disadvantaged neighbourhoods and we are hopeful that the Community Wealth Fund will help build vital social and economic capital, laying the foundations for lasting positive change in these areas.

“We look forward to working with the National Lottery Community Fund as they take forward next steps on delivery of the Community Wealth Fund on behalf of government

Community Wealth Fund – how will it work?

The Community Wealth Fund will deliver targeted local investment across England and is NOT open to applicants like regular National Lottery funding programmes. To reduce inequalities, funding will be allocated to communities that have the highest level of need across England: places experiencing the challenges of both high deprivation and low social capital and infrastructure, making them “doubly-disadvantaged”.

To improve social infrastructure in the places that need it the most, the Community Wealth Fund will allocate between £1 million and £2.5 million to each beneficiary community to invest directly in the spaces and activities that underpin happy, healthy communities. This will be available over ten years to be used to address the priorities determined by local people.

The National Lottery Community Fund is currently designing the detail of the programme and developing the methodology for selecting the areas to benefit from this funding.

Note to editors

In its response to the public consultation on the future purposes of dormant assets funding, the Government announced that community wealth funds would be added as the fourth named cause for dormant assets funding in England, alongside the three existing causes: youth, financial inclusion, and social investment wholesalers.