More than £1bn of financial assets from the Dormant Assets Scheme has been transferred to social and environmental initiatives, the government has announced.

The money has been distributed to causes through the National Lottery Community Fund since its inception in 2011, during which time more than 50 banks, building societies and insurance and pension providers have transferred dormant funds into the scheme.

The scheme is operated by Reclaim Fund Ltd, a not-for-profit body owned by HM Treasury.

Last year, the Financial Conduct Authority said the scheme was expected to unlock a further £880m after the scheme was expanded to include dormant investment assets and client money.

At this point, the scheme had unlocked more than £745m.

The £1bn announcement comes as the Department for Culture, Media and Sport confirmed that £350m of dormant assets funding in the next four years will be allocated  equally across four spend priorities in England: young people, social investment, financial inclusion and community wealth funds.

Stephanie Peacock, the minister for civil society, said the scheme had provided life-changing funding to good causes across the UK.

“Passing the milestone of £1bn transferred is a testament to the power of industry and government in partnership, and an appropriate moment to recognise the contributions of all the banks, building societies and insurance and pension firms which participate in the scheme,” Peacock said.

The scheme was introduced by former Prime Minister Gordon Brown during his time in office.

“From supporting 25,000 disadvantaged young people in employment and training to expanding a social investment industry now investing £10bn in UK charities and social enterprises, its impact has been transformative,” he said.

“In thanking the board and staff of Reclaim Fund Ltd for its tireless work, I call on more  financial institutions with dormant assets to volunteer to join and release a further £1bn for vital good causes in the coming years.”