England: Interest on client accounts could be used to fund legal aid
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Law firms in England and Wales may have to hand over the interest from client accounts to help fund legal aid under plans being considered by the UK government.
The Ministry of Justice has been privately consulting with legal aid providers and the Solicitors Regulation Authority (SRA) on the proposed scheme, the English Law Society Gazette reports.
A number of roundtable discussions have taken place this month, where the MoJ has reportedly suggested taking 100 per cent of the interest and allocating it to the legal aid budget.
At present, the interest on client accounts is generally shared between law firms and their clients, with many firms relying on it for cashflow.
A spokesperson for the MoJ said: “This government is committed to improving access to justice for those that need it.
“We are exploring the possibility of an interest on lawyers’ client account scheme and will provide an update in due course.”
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