Law firms would forgo client account interest to generate extra cash for access to justice under proposals being considered by the Ministry of Justice, the Gazette has learned.

Legal aid providers have been invited to participate in roundtable discussions next month on the possibility of an Interest on Lawyer’s Client Account (ILCA) scheme.

The invitation says: ‘There are significant demand and pressures on the justice system and advice sector. With wider funding constraints across both the public and third sectors securing additional financial resources to address these challenges will be difficult. In response, and as part of the future development of the legal support strategy, we are considering innovative approaches to generate additional funding for key areas including access to justice.’

The proposal is attracting strong opinions. One Gazette commenter said: ‘As a medium-sized firm which does [approximately] 35% legal aid work I think we are already suffering enough and intend to tell them so!’

Law Society president Richard Atkinson said Chancery Lane has doubts about how much money would be generated ‘particularly given the impact of electronic banking and the bureaucracy it would entail’.

The proposal represents a ‘hypothecated tax on the profession and [a] sector which already generates significant government revenue’, Atkinson added.

Chris Minnoch, chief executive of the Legal Aid Practitioners Group, said: ‘The key questions for us, if this goes ahead, are will the MoJ utilise any funds raised to bolster the legal aid scheme by, for example, increasing fees or expanding scope, or will the income be used for other access to justice projects?

‘Legal aid is by some distance the biggest and most impactful aspect of the advice ecosystem, and has been under-resourced for decades, so we would like a clear message from the MoJ that any additional funding stream (be it ILCA or otherwise) will be used to ensure the legal aid scheme is more effective and more sustainable.’

Other Westminster institutions are exploring funding options. The Commons justice select committee will look at the feasibility of a legal sector levy as part of an access to justice inquiry announced this week.