Big Society gets dedicated finance house

David Cameron’s vision for a Big Society bank became reality yesterday, with the first investment set to help disadvantaged young people into work or education.

By The Newsroom

Published 29th Jul 2011, 07:00 BST

The bank, now rebranded as Big Society Capital, is set to receive £600m in equity capital in the coming months – £400m from dormant bank accounts and £200m from the big four UK high street banks.

It is aimed at giving socially orientated financial organisations greater access to affordable capital, so they can in turn help charities, social enterprises and voluntary groups.

The Big Lottery Fund is to make the first investment, worth £1m in principle, to the Private Equity Foundation, which provides children and young people with basic skills, emotional support and help to gain employment.

HSBC, Royal Bank of Scotland (RBS), Lloyds and Barclays said they would invest £200m in Big Society Capital.