Pressure from some leading building societies, including the Skipton, could enable them to use cash from dormant savings accounts for local good causes rather than putting it into a national charitable pot as the Government wants.

The Government is proposing that large banks and building societies should donate money from accounts those which have not been used for 15 years or more to "good causes" distributor the Big Lottery Fund.

But this idea has been rejected by the House of Lords, thanks to West Yorkshire peer, Lord Shutt of Greetland.

His amendment to the Dormant Bank and Building Society Accounts Bill means that the UK's eight largest societies, including the Skipton and Bradford-based Yorkshire Building Society, would be allowed to continue focusing their charitable efforts on local causes.

In the Government's first defeat of the current parliamentary session, peers voted by 195 to 141 to reject the original proposals that would require those banks and building societies with assets of £7 billion and above to give money from dormant accounts to the Big Lottery Fund.

Lord Shutt told peers there eight of the UK's 59 building societies would be affected by the amendment. Most of the "big eight" building societies already had their own charitable foundations and preferred to contribute locally rather than to the general scheme.

The campaign against the Government's proposals was led by the UK's largest building society, the Nationwide and supported by the Skipton Building Society.

Jennifer Holloway, the Skipton's head of media relations, said: "We welcome this development in the Lords and would hope that the Government accepts the amendment.

"We would prefer to be able to use the money from dormant savings accounts to benefit local charities and good causes that are relevant to our members rather than put the money in a large national pot. "This is why our branches each have access to funds for use in their local communities."

The Skipton Group, including its subsidiaries, annually donates around £600.000 to charities and local community causes.