The Ministry of Justice is advertising for two new senior civil servants to lead the government's raid on client account interest – even though it has yet to announce a final decision on the controversial policy.
The MoJ has placed an advertisement for ‘head of additional funding policy’ stating explicitly that this will involve developing a scheme ’to unlock funding from interest generated on legal client accounts’.
Keir Starmer's government had consulted on an interest on lawyers’ client accounts scheme (ILCA), but the new administration under Andy Burnham has yet to publicly revisit the policy.
But the recruitment drive suggests that plans have been made to put a scheme in place, with the MoJ describing it as ‘our flagship programme’.
The job advertisement says: ‘This is a complex, high-profile reform that offers a rare opportunity to shape policy from primary legislation through to implementation. The successful candidates will play a leading role in developing and delivering primary and secondary legislation, establishing new operational arrangements, and creating a sustainable funding stream that will have a lasting impact on the justice system.’
Salaries for the grade 7 posts will range from £58,511 to £70,725, depending on location. The new recruits will work with major partners across government, particularly HM Treasury, and 'often brief the highest levels of government'. They will also engage with external stakeholders, including financial institutions, regulators, legal representative bodies and law firms. The MoJ is described as 'a fast-paced and intellectually stimulating environment where no two days are the same'.
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The MoJ is understood to see ILCA – or a version of it – as a key funding source and has earmarked the money for critical justice services. The proposal was to retain 50% of the interest generated on individual client accounts, and 75% on pooled client accounts, which would be remitted into central funds.
The job advertisement will dash the hopes of many in the profession that the change in prime minister would allow the plan to be quietly dropped.
The Law Society said today that ILCA cannot and should not proceed, as it sets a damaging precedent and conflicts with wider government commitments on growth.
Brett Dixon, Society vice president, said: ‘We are disappointed to see the MoJ advertising a role that appears to indicate the ILCA scheme is moving ahead despite near-universal opposition from the legal profession, the banking industry and serious concerns from the regulator. This is particularly concerning given we are still waiting for the outcome of the consultation that took place earlier this year.
‘Instead of responding to the widespread criticism of the proposal, the MoJ appears to be moving forward with stealth. The proposal is a raid on clients’ money to generate an unreliable source of revenue for the justice system and to address general budget shortfalls. It would fundamentally change the rules of the game by making the MoJ a tax-raising department funded through clients of legal services.’






















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