I acknowledge the support expressed by many in the House for using the English portion of dormant assets funding to support, through community wealth funds, the left-behind communities, which experience high levels of deprivation and low levels of social infrastructure. Amendment 1 is not intended to disregard the support for that approach; instead, it is designed to protect the integrity of the consultation process, which offers the most appropriate route to make that a reality.

I thank the right hon. Member for Kingston upon Hull North for tabling amendment 3, seeking a commitment to consult on community wealth funds. I thank hon. Members for taking the time last week to meet me, alongside local trusts, to discuss the proposal. We are content to place on the record our commitment that the first consultation under this Clause, which will be launched as soon as possible after Royal Assent, will explicitly include community wealth funds as an option to consider for the English portion.

The scheme has spent the last decade working to tackle systemic social challenges and to level up communities who need it the most, particularly by targeting and benefiting left-behind areas. In England, the impact is delivered through four independent organisations that distribute funding to tackle youth unemployment and financial exclusion, in addition to growing a thriving social investment market. To date, more than £465 million from the scheme has been invested in charities and social enterprises, often in areas or communities that may not have benefited from sustained investment in the past. For example, the growth fund is a £46 million partnership between the National Lottery Community Fund, Big Society Capital and Access. It has significantly expanded the reach of investment to charities and social enterprises that are unlikely to have taken on social investment before. The largest number of investments have been made to target support for vulnerable young people, those not in employment, education or training, and people experiencing poverty, financial exclusion and long-term unemployment. A quarter of all growth fund investments have been in the most deprived 10% of neighbourhoods.

We are aware that dormant asset funding is entirely dependent on industry participants who voluntarily transfer money into the scheme, as well as the general public’s trust in the principles that underpin it. We have received calls from the public and industry participants to have a say in how funds can be spent in England in the future. We are committed to affording them this opportunity through public consultation. The insertion of community wealth funds into the Bill risks pre-empting a consultation outcome by identifying a different approach for English expenditure before the public, the civil society sector, parliamentarians and industry participants in the scheme are able to utilise the opportunity to have their say.

The current causes of youth, financial inclusion and social investment have had widespread support over the last decade and were selected through a consultation in 2007. It would not be right to name any new cause in legislation before we consult on doing so. We will ensure that community wealth funds are included as a clear option to consider in the consultation we will launch following Royal Assent, which could be as soon as this summer. During this process, we will be keen to hear from everyone, including local communities and those who advocate for community wealth funds. A consultation lasting 12 weeks represents a proportionate amount of time for the issue at hand. Should it be determined that the community wealth funds are the best use of some of the English portion, the Bill is already designed to provide the most appropriate avenue to make that a reality.

While we are committing to including community wealth funds as an option in the consultation, we have said and will reiterate that we will not predetermine the outcomes. The Government amendment will ensure that the consultation remains an open and fair opportunity for people to have their say in how this important funding stream can have the best impact in England.