We're calling for an evidence-led approach to funding free legal advice through ILCA schemes

We have responded to the Ministry of Justice consultation on a potential Interest on Lawyer’s Client Accounts (ILCA) scheme, urging government to learn from international evidence before implementing in England and Wales.

Our response sets out four key recommendations:

1. Wait for the evidence. The Centre for Socio-Legal Studies is currently conducting research on ILCA schemes and other additional funding models. We’re urging the MoJ to wait for these findings before making decisions that could have significant unintended consequences.
2. Ringfence funds for access to justice. For the most part international ILCA schemes don’t fund core government services and instead direct funds towards improving access to justice. We’re calling on the MoJ to ringfence any ILCA funds for free legal advice and support.
3. Use an independent foundation model. Distributing ILCA funds through an independent charitable foundation, not central government, is the model used in most international schemes. This is the most sustainable model as independent foundations can take a long-term approach beyond political cycles and have the specialist expertise to make grants that deliver measurable impact.
4. Listen to stakeholders and take time to get this right. Law firms, professional bodies, charities, and academic researchers all have crucial insights. Getting this right matters too much to rush and the best solutions come from working together.

An ILCA scheme could make a real difference to these people. If properly designed, funds could be directed to where they are most needed delivering the free legal advice that could keep people in their homes, protect them from abuse, or secure the benefits they’re entitled to.

The evidence shows that investing in free legal advice delivers returns. For every £1 spent in 2023, government saved £2.71. The Treasury could save up to £12 billion over ten years by investing in advice. Advising 100,000 clients could put 38,900 more people into work, generating around £81 million in income tax and National Insurance.

This is an opportunity to create sustainable funding for services that prevent homelessness, protect people from unfair dismissal, help families navigate benefit systems, and keep marginalised communities safe.

We’re ready to work with the MoJ and all stakeholders to design an ILCA scheme that learns from international evidence, engages the legal profession, and delivers justice for the people who need it the most.