On Wednesday 7th January 2026, 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. The Ministry of Justice has extended the deadline for submissions to their consultation on the proposed Interest on Lawyers’ Client Accounts (ILCA) Scheme – the new deadline date is 9 March 2026. (It was 9 February 2026).
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.
The Law Society have arranged for their members a consultation webinar on Thursday 22 January 2026, 12 to 1pm. For more information and to register your free place, click here.
They also intend to take the following steps:
• 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.