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Liberal Democrat deputy leader Simon Hughes is seeking clarification over the implications for youth services of the “Big Society Bank”, it has been revealed.

The Labour government made it law that cash from dormant bank accounts would be spent on improving youth services. However, the government has since promised the money to neighbourhood and community groups as part of the Big Society Bank, prompting Mr Hughes, also the co-chair of the All Party Parliamentary Group on Youth Affairs, to ask for clarification, Children and Young People Now has reported.

"I am trying to clarify whether the big society aims to uphold the idea that funding for young people through the big society bank remains a priority in England," Mr Hughes told the publication, "I hope we can have that confirmed before the end of the summer."

Under the Dormant Bank Accounts Act 2008, a bank or building society account is said to be dormant if the customer has not made any sort of transaction or query – such as a statement or service request - for 15 years.

It is estimated there is around £500 million lying dormant in bank and building society accounts along with another £435 million in National Savings and Insurance.