David Cameron launches Big Society Capital

A new financial institution, set up by the government to finance charities and community groups, has been launched by the government.

Big Society Capital has £600m, of which the majority comes from unused cash in bank accounts that had been dormant for more than 15 years.

The fund will back social enterprises that prove they can repay an investment through the income they generate.

Speaking at the launch, Prime Minister David Cameron said "social problems need social action''.