Yesterday the Ministry of Justice (MoJ) announced a consultation on “interest on lawyers’ client accounts (‘ILCA’) scheme” which would require solicitors to hand over 75% of the interest on client accounts to the MoJ. You can view the consultation in full here: https://www.gov.uk/government/consultations/interest-on-lawyers-client-accounts-scheme
Unlike similar schemes that the Law Society are aware of in other jurisdictions, the money would not be earmarked for access to justice projects but would instead go into general MoJ funding.
The MoJ is seeking views on the practical implications of what they are proposing and there is a very short deadline of 9th February 2026 to respond.
The Law Society has issued a press release, which highlights their initial view, and they will shortly be updating their web page with their key concerns.
They welcome views from firms and organisations, particularly regarding the practical problems they envisage with the scheme and what the impact would be on their viability if the changes are introduced.
They also intend to take the following steps:
• the Law Society will host a webinar for members and polling opinions on the proposals in the next couple of weeks to support our consultation response (details will go out in Professional Update)
• They are seeking an urgent meeting with the Justice Minister; and
• They are encouraging members and their colleagues at Local Law Societies to submit their own responses too
If you have comments to make them aware of directly, please do so as soon as possible and no later than 23 January 2026. As above, we would encourage you to also submit independent responses to this consultation on behalf of your firms.