The Ministry of Justice has published a consultation proposing the introduction of an Interest on Lawyers’ Client Accounts Scheme (ILCA) in England and Wales. The proposals would require a substantial proportion of interest earned on solicitors’ client accounts to be paid to Government, including a proposed 75% rate for pooled client accounts (with higher rates also under consideration) and 50% for individual client accounts.

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Unlike similar schemes in other jurisdictions, the proposed ILCA would not ring-fence funds for access to justice or legal aid projects, but would instead contribute to general Ministry of Justice funding. The proposals raise important questions around proportionality, administrative burden, costs to firms and clients, and the potential impact on certain practice areas, including conveyancing and legal aid provision.

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Surrey Law Society considers this to be a significant proposal with potential implications for firms of all sizes. We will be submitting a response to the consultation on behalf of our members and are keen to ensure that our response reflects the practical realities facing firms across the county.

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To support this, we have launched a member survey, aligned to the consultation questions, to gather evidence on the likely impact of the proposals. The survey is designed to be proportionate and accessible, and all questions are optional.

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Members are strongly encouraged to complete the SLS survey by 28 January 2026 so that their views can help shape our collective response.

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Given the scale and potential impact of the proposals, members may also wish to consider submitting an individual response directly to the Ministry of Justice.

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The Law Society has also published guidance and commentary on the proposals and will be hosting a member consultation webinar on Thursday 22 January 2026 (12–1pm). We encourage members to engage with these resources as part of considering their response.

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Further information and links

• Surrey Law Society member survey
• Ministry of Justice consultation – Interest on Lawyers’ Client Accounts Scheme (ILCA)
• The Law Society member consultation webinar – Thursday 22 January 2026 (12–1pm)
• The Law Society guidance: Interest on lawyers’ client accounts (ILCA)

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Key dates

• Surrey Law Society member survey deadline: 28 January 2026
• Ministry of Justice consultation deadline: 9 February 2026